Sterling fell 0.18% against the dollar to $1.3283 as of 06:17 ET, while the euro was little changed at $1.1125, near its lowest level of the year, as a firmer dollar and caution ahead of the Federal Reserve decision weighed on European currencies. Receding fears of an AI-driven equity sell-off, after strong third-quarter results from SK Hynix, let markets refocus on dollar-supportive factors, with the dollar index nearing its yearly highs around 102.35. ING's Chris Turner said the clearer risks are higher energy prices, higher inflation and the central bank response, and suspected Fed Chair Warsh would avoid citing tighter financial conditions. The UK budget is due the same day, but ING does not expect it to have much say on Bank of England tightening, though a 20 basis point risk premium in 10-year gilt yields could partly unwind. The euro was also pressured by an unresolved French budget crisis, while the ECB's lending survey showed tighter conditions and an unexpected fall in corporate loan demand.
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Related tickers and likely impact
GBP/USD
▼ Likely negativeRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/27/2026 | 1.33072 |
| Change that session | -0.26% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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