The pound steadied just below $1.3450 on Tuesday, 10 November 2026, as traders held their positions ahead of US inflation data due later in the day.

Sterling traded at around $1.3445 in early Asian hours, little changed on the day, with traders preferring to wait on the sidelines before the consumer price index (CPI) report. The dollar was also steady in Asian trade after a bumpy few days, while the euro jumped 0.7% overnight to $1.1220.

US inflation report in focus

The US CPI report, due at 1330 GMT, is the main event for currency markets on Tuesday. Economists expect headline prices to have risen by 0.3% in October from September, with core prices, which exclude food and energy, up by 0.2%.

Anything hotter than expected would add to bets that the Federal Reserve will raise interest rates again next month. Traders currently see around an 84% chance of a Fed rate rise in December, according to CME's FedWatch tool, after a stronger-than-expected US jobs report last week. Producer price data follow on Friday.

Bank of England support for sterling

Sterling has drawn support since the Bank of England raised interest rates last week. On 5 November, the Bank's Monetary Policy Committee voted 8-1 to lift Bank Rate by 25 basis points to 4.00%, its first increase in more than three years. The single dissent came from Catherine Mann, who voted for a larger 50-point rise to 4.25%.

Governor Andrew Bailey has pointed to the war in the Middle East, which pushed energy prices higher, as a key factor in deciding future rates. Bank of England policymaker Sarah Breeden is due to speak on Tuesday, and traders will listen for any fresh guidance on the path of rates.

At 4.00%, Bank Rate now sits well above the European Central Bank's 2.50% deposit rate, a gap that has helped support the pound against the euro as well as the dollar.

UK growth data due on Thursday

The next big test for sterling comes on Thursday, when the UK publishes third-quarter GDP figures. Economists expect growth of 0.7%, although monthly data for September showed the economy stagnating, underlining the uneven nature of the recovery.

For now, the pound sits in the middle of a range it has traded in for almost a year and a half, and Tuesday's US inflation figures are likely to decide its next move. A softer-than-expected reading could weaken the dollar and lift sterling, while a hot reading would probably do the opposite.

Exchange rates quoted are as reported on Tuesday morning, 10 November 2026, and move through the trading day.