GBPUSD Analysis 24-September-2025

Sterling continues to display notable relative strength, a dynamic fueled primarily by two key factors: broad-based U.S. Dollar weakness amid expectations of Fed easing, and a favorable monetary policy divergence with the Bank of England (BoE). The market perceives the BoE as being in a more hawkish position relative to the Fed, as stubbornly high domestic inflation in the UK necessitates a steady policy stance, thereby supporting the Pound’s yield advantage. This fundamental backdrop has
provided a solid floor for the currency pair in recent weeks.