GBP and EUR Slide Against USD Following Hot US CPI Data

Key Facts

1GBP/USD fell approximately 0.52% as higher-than-expected US inflation data reinforced expectations for further Federal Reserve interest rate hikes.

2The Euro hit a 17-month low against the US Dollar following the release of US inflation data.

The GBP/USD pair fell approximately 0.52% as higher-than-expected US inflation data reinforced expectations for further Federal Reserve interest rate hikes. FXStreet reported that the Euro hit a 17-month low against the US Dollar following the release of the September 2026 inflation figures. The consumer price index data exceeded market estimates, triggering renewed demand for the USD as both a safe-haven and yield-bearing asset.

The surprise macro data caused a rebound in US Treasury yields, pushing major currency pairs to multi-month lows. This market shift occurs as investors price in more aggressive monetary tightening by the Federal Reserve under Chair Kevin Warsh. Recent economic indicators have shown persistent inflationary pressures, leading to a significant adjustment in global interest rate expectations in favor of the US currency.