# Pound near $1.3400 as traders bet on near-certain BoE hike

> The pound traded near $1.3400 on Friday, up 0.19% on the day, as markets priced a near-certain Bank of England rate increase to 4% at its November meeting. Traders trimmed bets on further Federal Reserve tightening after US data showed third-quarter growth of 3.4% and core PCE inflation of 3.1%. The odds of a December Fed hike fell to 70%.

- Date: 2026-10-31 · published 2026-11-01T06:10:54.724Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/4269-pound-near-1-3400-as-traders-bet-on-near-certain-boe-hike
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A widening rate differential favoring sterling supports GBP/USD, while firmer US growth and sticky inflation keep the dollar supported. Sterling strength tied to BoE tightening is a macro driver with limited direct effect on feed grain prices.

## Read by commodity

- DXY: bearish ▼
- GBPUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2025-08-06 | [Dollar falls as traders bet on more rate cuts](https://feedsoft.ai/events/23519-dollar-falls-as-traders-bet-on-more-rate-cuts.md) | -0.5% | -0.3% |
| DXY | 2024-11-07 | [Pound (GBP) Rises as Traders See BOE Pausing Rate Cuts Until Next Year - Bloomberg](https://feedsoft.ai/events/27647-pound-gbp-rises-as-traders-see-boe-pausing-rate-cuts-until-next-year-bloomberg.md) | +1.0% | +0.8% |
| DXY | 2021-10-21 | [Commodity currencies at multi-month highs, pound firm on BoE hike bets](https://feedsoft.ai/events/44806-commodity-currencies-at-multi-month-highs-pound-firm-on-boe-hike-bets.md) | +0.1% | +1.4% |
| DXY | 2022-07-19 | [Pound rallies vs dollar as data suggests BoE has room to hike](https://feedsoft.ai/events/40751-pound-rallies-vs-dollar-as-data-suggests-boe-has-room-to-hike.md) | -0.3% | -1.1% |
| DXY | 2025-06-26 | [Pound touches near 4-year high as Trump rattles dollar](https://feedsoft.ai/events/24477-pound-touches-near-4-year-high-as-trump-rattles-dollar.md) | -0.9% | -0.6% |

## Sources

- macroherald.com: https://www.macroherald.com/pound-near-1-3400-as-traders-bet-on-near-certain-boe-hike/

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