British Pound climbs as UK inflation keeps BoE hike bets alive
The Pound Sterling advances on Thursday during the North American session, up 0.25% after US economic data revealed that the labour market remains solid, despite a weaker Nonfarm Payrolls in July. The GBP/USD trades at 1.3639 after reaching a daily low of 1.3594.
GBP/USD rises as UK inflation offsets solid US labor data
The Greenback has recovered some ground after posting losses, following the US Department of the Treasury's announcement of a bond buyback program. The Treasury’s goal is to provide liquidity for the long end of the curve, but markets interpreted the move as a form of Yield Curve Control (YCC).
The US Dollar Index (DXY), which measures the buck’s performance against a basket of six currencies, remains steady at 98.79, after refreshing two-and-a-half-month lows at 98.55, a level last seen in May 14.
Data-wise, the US Initial Jobless Claims for the week ending August 15, dipped from 212K down to 206K, below forecasts of 210K. At the same time, the 4-week average of jobless claims edged up from 199.75K to 204K, an increase of 5K.
Recently, Fed officials crossed the wires. St. Louis Fed Alberto Musalem said that strong growth and investment are influencing the bond market. He added that in July, he recommended raising rates, but for the September meeting, he remains open.
Earlier, San Francisco Fed Mary Daly said that a rise in long-term bond yields is a global issue, which reduces its usefulness as a signal for the Fed. She added that she doesn’t see Fed credibility as at risk and is making the case that the short end is reacting to the data.
In the UK, inflation hit a four-month high in July as confirmed by data released on Wednesday. Expectations that the Bank of England will raise rates in 2026 remain high, with traders expecting 25 basis points of tightening by the December meeting, as revealed by Prime Terminal.
In the meantime, traders are eyeing the release of UK Retail Sales for July, which are expected to show that consumer spending decelerated. In addition, traders will eye S&P Global Flash PMIS. Across the pond, the US schedule will feature S&P Global Flash PMIs, amid a scarce week of data releases.
GBP/USD Price Forecast: Technical outlook
In the daily chart, GBP/USD trades at 1.3636, maintaining a bullish near-term bias as price holds above the cluster of former descending trend-line resistance now turned support around 1.3499–1.3409 and the 50/100/200-day simple moving average (SMA) group near 1.3390. The upward-sloping support lines, with break points at 1.3609 and 1.3366, reinforce the constructive structure, while the Relative Strength Index (14) at 70.49 edges into overbought territory, hinting that upside momentum is strong but vulnerable to consolidation.
On the downside, immediate support emerges at the recent highs around 1.3609, followed by the broken trend-line levels at 1.3499 and 1.3409, and then the dense SMA floor near 1.3390, with the lower rising trend-line break at 1.3366 acting as a deeper structural base. With no clear resistance levels defined above the market in the current dataset, the pair would likely need an overbought correction before bears can challenge this supportive zone, keeping the broader path of least resistance skewed to the upside while these levels hold.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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The merged company’s total debt amounts to approximately $80 billion. David Ellison and co-CEO Ynon Kreiz face a $6 billion cost-cutting target. The senior management teams at CNN and CBS News will remain unchanged. Anzar Mehraj / Harshita Mary Varghese, Reuters, October 6 — Paramount-Skydance (PSKY.O) completed its $110 billion blockbuster acquisition of Warner Bros. Discovery (WBD.O) on Tuesday, giving rise to a Hollywood giant named Skydance and placing CEO David Ellison in charge of one of the world’s largest entertainment companies. The deal combines the studios behind “Mission Impossible”, “Harry Potter”, and DC Films with major TV and streaming networks such as CBS, CNN, Paramount+, and HBO Max, creating a massive entertainment company encompassing film, television, and news. On Tuesday, the merged company’s stock moved from Nasdaq to the New York Stock Exchange, trading under the ticker “SKYD”. A settlement agreement reached with a coalition of several US states and the Hollywood writers’ union (link) cleared one of the main legal obstacles to this landmark media merger. The move comes as Hollywood faces declining cable TV subscriptions, costly battles over streaming viewers, and ongoing union pressure regarding jobs and protections for creative workers. Last week, Ellison stated (link) that the choice of the name “Skydance” was intended to preserve the independent identities of the Paramount and Warner Bros. studios, rather than folding them into a new brand. However, analysts note that the name reinforces Ellison’s control, highlighting that some of Hollywood’s most iconic brands now answer to him and providing a platform for his own strategies and culture. In just 16 years, Skydance has evolved from an independent studio into a central player in one of Hollywood’s most powerful deals. Founded in 2010 by the son of Oracle co-founder Larry Ellison, it gained prominence as the financier and producer behind Paramount’s blockbuster “Top Gun: Maverick”. After merging with Paramount last year (link), Skydance set its sights on Warner Bros., not only engaging in a fierce bidding war with Netflix (NFLX.O) but also attracting interest from other potential buyers, including Comcast (CMCSA.O). Broader Hollywood ambitions Ellison has appointed former Mattel CEO Ynon Kreiz as Skydance’s co-CEO, responsible for day-to-day operations and integration, while Ellison will oversee creative direction and overall strategy. The two must consolidate the two giant companies while achieving the planned $6 billion in cost savings. Paramount stated that a significant portion would come from “non-labor costs”—specifically, integrating the streaming technology and cloud service providers of both companies. However, such wide-ranging cuts are expected to impact jobs across Hollywood. The merged company is projected to carry around $80 billion in debt, putting pressure on Ellison to develop streaming business, sustain cash flow from cable networks, and boost box office performance. CNN President Mark Thompson and CBS News Editor-in-Chief Bari Weiss will continue in their leadership roles at Skydance (link). (For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. As automated translations may contain errors or lack necessary context, Reuters does not guarantee the accuracy of automated translation texts and provides them solely for reader convenience. Reuters bears no responsibility for any damage or loss arising from the use of automated translation functions.)
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