GBP/USD Dips: US Holiday & UK CPI Impact 2026
GBP/USD Slides Lower as Thin US Holiday Trading Hits British Pound — All Eyes on UK CPI Key Takeaways GBP/USD exchange rate fell during a low-liquidity North American session due to a US market holiday, amplifying British Pound volatility. UK CPI forecast 2026 remains a critical data point — markets expect inflation to hold stubbornly above the Bank of England 's 2% target. Thin trading conditions can exaggerate currency moves, making even modest sell pressure drag a pair lower than normal. US market holiday trading impact is often underestimated by retail traders — reduced liquidity means wider spreads and faster, sharper moves. Investors are positioned cautiously ahead of the UK CPI release, which could either support or sink the British Pound further. Introduction: When the US Sleeps, Currency Markets Feel It You might think that when Wall Street goes quiet, the rest of the world does too. But currency markets never really sleep — they just get thinner, moodier, ...