{ "id": 59494, "date": "2026-01-15T09:35:43", "date_gmt": "2026-01-15T02:35:43", "guid": { "rendered": "https:\/\/hbbgroup.net\/gbp-usd-rallies-as-fed-independence-threats-hammer-dollar\/" }, "modified": "2026-01-15T09:35:43", "modified_gmt": "2026-01-15T02:35:43", "slug": "gbp-usd-rallies-as-fed-independence-threats-hammer-dollar", "status": "publish", "type": "post", "link": "https:\/\/hbbgroup.net\/en_us\/gbp-usd-rallies-as-fed-independence-threats-hammer-dollar\/", "title": { "rendered": "GBP\/USD rallies as Fed independence threats hammer Dollar" }, "content": { "rendered": "
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The British Pound<\/a> extended its gains on Wednesday as the Greenback is punished by investors due to threats to the Federal Reserve\u2019s independence and a verbal intervention by Japanese officials, boosted the Yen. The GBP\/USD trades at 1.3461 up by 0.30%.<\/p>\n

Sterling extends gains as political pressure on the Federal Reserve outweighs strong US data releases<\/h2>\n

The US Dollar reversed course on Wednesday amid Fed\u2019s independence threats by the Trump administration. On Sunday, the Fed Chair Jerome Powell revealed that the accusations are \u201cpretexts\u201d by the White House who\u2019s not happy that the central bank is setting interest rates<\/a> \u201cbased on our best<\/a> assessment of what will serve the public, rather than following the preferences of the President.\u201d<\/p>\n

The US Dollar Index (DXY), which tracks the performance of the buck\u2019s value versus six currencies, is down 0.20% at 98.97.<\/p>\n

Inflation on the producer\u2019s side revealed by the US Bureau of Labor Statistics showed that the November\u2019s Producer Price Index (PPI) print came at 3% up from October\u2019s 2.8%, exceeding forecasts of 2.7%. At the same time core PPI for the same period also hit 3% up from 2.9% in the previous month, above forecasts of 2.7%.<\/p>\n

At the same time, Retail Sales in November exceeded forecasts of 0.4%, rose by 0.6% MoM, improving from a 0.1% contraction in October, boosted by a rebound of motor vehicle sales and household spending.<\/p>\n

According to the data, expectations that the Federal Reserve<\/a> would hold rates unchanged at the January meeting are at 95%, according to Prime Market Terminal<\/a>. However, money markets are still seeing the Fed funds rate ending at 3.23%, implying that they are projecting 52 basis points of ease, towards the end of the year.<\/p>\n

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<\/p>\n<\/div>

Source: Prime Market Terminal<\/figcaption><\/figure>\n

Federal Reserve policymakers cross the wires<\/h2>\n

The Minneapolis Fed President Neel Kashkari said that Trump\u2019s Fed actions are related to monetary policy. He still sees a rate cut but says that it is too soon. Chicago\u2019s Fed Austan Goolsbee said that central bank independence is key to low prices, while Philadelphia\u2019s Ana Paulson says that modest cuts \u201care likely appropriate later this year\u201d if forecasts are met.<\/p>\n

On breaking <\/strong>news<\/strong><\/a>, the US Supreme Court announced that it would not rule on tariffs today.<\/strong><\/p>\n

Across the pond, the UK docket was light with traders waiting for the release of GDP<\/a> figures on Thursday. Bank of England\u2019s Taylor said that he expects policy to normalize \u201cat neutral sooner rather than later, as I said on the December minutes.\u201d He added that further rate cuts are in his outlook<\/a>.<\/p>\n

GBP\/USD Price Forecast: Technical outlook<\/h2>\n
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<\/p>\n<\/div>

GBP\/USD daily chart<\/figcaption><\/figure>\n

The GBP\/USD daily chart suggests that the pair is neutral biased. Momentum is also neutralizing as the Relative Strength Index (RSI) hovers near its neutral level, slightly above it.<\/p>\n

For a bullish continuation, the pair must clear January 13 high of 1.3494 to extend its gains past 1.3500 with traders targeting January 6 cycle high at 1.3567. A breach of it and the 1.3600 is up next. Conversely, the GBP\/USD tumbles below 1.3400 and it would improve sellers\u2019 chances as the 200-day SMA lies at 1.3392. If broken, this could exacerbate a drop towards the 50-day SMA at 1.3305.<\/p>\n

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Pound Sterling Price This week<\/h2>\n

The table below shows the percentage change of British Pound (GBP) against listed major currencies this week. British Pound was the strongest against the Japanese Yen.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/th>\nUSD<\/th>\nEUR<\/th>\nGBP<\/th>\nJPY<\/th>\nCAD<\/th>\nAUD<\/th>\nNZD<\/th>\nCHF<\/th>\n<\/tr>\n<\/thead>\n
USD<\/th>\n<\/td>\n-0.18%<\/td>\n-0.38%<\/td>\n0.03%<\/td>\n-0.23%<\/td>\n0.00%<\/td>\n-0.34%<\/td>\n-0.15%<\/td>\n<\/tr>\n
EUR<\/th>\n0.18%<\/td>\n<\/td>\n-0.21%<\/td>\n0.28%<\/td>\n-0.05%<\/td>\n0.19%<\/td>\n-0.16%<\/td>\n0.03%<\/td>\n<\/tr>\n
GBP<\/th>\n0.38%<\/td>\n0.21%<\/td>\n<\/td>\n0.47%<\/td>\n0.17%<\/td>\n0.40%<\/td>\n0.05%<\/td>\n0.24%<\/td>\n<\/tr>\n
JPY<\/th>\n-0.03%<\/td>\n-0.28%<\/td>\n-0.47%<\/td>\n<\/td>\n-0.30%<\/td>\n-0.07%<\/td>\n-0.42%<\/td>\n-0.21%<\/td>\n<\/tr>\n
CAD<\/th>\n0.23%<\/td>\n0.05%<\/td>\n-0.17%<\/td>\n0.30%<\/td>\n<\/td>\n0.21%<\/td>\n-0.12%<\/td>\n0.08%<\/td>\n<\/tr>\n
AUD<\/th>\n-0.00%<\/td>\n-0.19%<\/td>\n-0.40%<\/td>\n0.07%<\/td>\n-0.21%<\/td>\n<\/td>\n-0.35%<\/td>\n-0.15%<\/td>\n<\/tr>\n
NZD<\/th>\n0.34%<\/td>\n0.16%<\/td>\n-0.05%<\/td>\n0.42%<\/td>\n0.12%<\/td>\n0.35%<\/td>\n<\/td>\n0.18%<\/td>\n<\/tr>\n
CHF<\/th>\n0.15%<\/td>\n-0.03%<\/td>\n-0.24%<\/td>\n0.21%<\/td>\n-0.08%<\/td>\n0.15%<\/td>\n-0.18%<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)\/USD (quote).<\/p>\n<\/p><\/div>\n<\/div>", "protected": false }, "excerpt": { "rendered": "

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