# GBP/USD firm as BoE rate cut lifts Sterling, soft CPI weighs on Dollar

> The Bank of England cut rates 25 bps to 3.75% in a 5-4 vote, and GBP/USD rose after the decision. US CPI cooled to 2.7% in November and core inflation slipped to 2.6%, although the shutdown affected data collection. Markets kept about 62 bps of Fed easing priced for 2026.

- Date: 2025-12-18 · published 2025-12-18T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/21760-gbp-usd-firm-as-boe-rate-cut-lifts-sterling-soft-cpi-weighs-on-dollar
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Softer US inflation and expected Fed easing weigh on the dollar, which supports dollar-denominated commodity prices. The effect on grain and feed markets is indirect.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-08-19 | [Sterling hits one-month high as Fed rate cut bets weigh on dollar \| Reuters](https://feedsoft.ai/events/29068-sterling-hits-one-month-high-as-fed-rate-cut-bets-weigh-on-dollar-reuters.md) | -0.8% | -0.7% |
| DXY | 2026-09-30 | [Canadian dollar firms as softer U.S. inflation weighs on rate-hike bets By Investing.com](https://feedsoft.ai/events/17701-canadian-dollar-firms-as-softer-u-s-inflation-weighs-on-rate-hike-bets-by.md) | -0.1% | +0.7% |
| DXY | 2024-11-07 | [Gold holds firm after US Fed rate cut, softer dollar](https://feedsoft.ai/events/27332-gold-holds-firm-after-us-fed-rate-cut-softer-dollar.md) | +1.0% | +0.8% |
| DXY | 2023-11-27 | [US dollar weakens as Fed rate cut view weighs](https://feedsoft.ai/events/33364-us-dollar-weakens-as-fed-rate-cut-view-weighs.md) | -0.2% | -1.0% |
| DXY | 2019-05-24 | [Dollar slips as weak data boosts US rate cut bets](https://feedsoft.ai/events/59248-dollar-slips-as-weak-data-boosts-us-rate-cut-bets.md) | +0.4% | -1.2% |

## Sources

- fxstreet.com: https://www.fxstreet.com/news/gbp-usd-firm-as-soft-cpi-pressures-dollar-boe-stance-supports-sterling-202512181544

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.