The Fed raised rates for the first time in three years. The detail was more hawkish than the decision itself: a unanimous vote, a higher dot plot, and Warsh reluctant to call current conditions restrictive. The dollar broke higher against both sterling and the euro. Meanwhile the BoE held, with chances of a November hike now at 69%. Wednesday’s PMIs are the week’s key data.
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Today’s FX rates: 21 September 2026
| Currency pair | Rate |
|---|---|
| gbp usd | 1.3382 |
| eur usd | 1.1480 |
| gbp eur | 1.1658 |
Rates correct as of 12:00am on Monday 21 September but may now have changed.
The Big 3
A deeper look at the performance of major currency pairs this week.
Hawkish Fed lifts the dollar as the BoE holds
The Fed raised rates for the first time in three years, but the big story was in the hawkish approach: a unanimous decision, a higher dot plot and stronger projections. GBP/USD broke below 1.3480 as a result. The BoE held as anticipated, but sharply higher inflation forecasts, now near 4% in early 2027, have lifted November hike odds to 69%. Wednesday’s PMI and MPC speakers are the week’s UK focus.
Dollar strength drives the euro through support
EUR/USD broke below trendline support last week, driven almost entirely by dollar strength after the Fed’s hike. With the Fed now tightening too, the euro has lost its rate advantage, so any recovery likely depends on dollar weakness rather than euro strength. Softer wage tracker data and a dip in industrial production add to the pressure, and slightly challenge the ECB’s resilient economy argument. A reading above 50 in Wednesday’s PMI would offer some respite.
Sterling holds its range as the euro lacks a catalyst
GBP/EUR held its consolidation range, with strong UK retail sales keeping it off the lows. The BoE held on a 6-3 vote but lifted its inflation forecasts sharply. The euro, meanwhile, lacks a catalyst: Lagarde has pushed back on market pricing for three more hikes, core inflation looks tamer once energy is stripped out, and political risk in France and Germany is building.
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Looking forward
Key dates for your calendar.
- Tuesday: 🇪🇺 Consumer Confidence, 🇺🇸 FOMC speeches
- Wednesday: 🇪🇺 Eurozone Manufacturing PMI Flash, 🇬🇧 UK Services PMI Flash, UK Manufacturing PMI Flash
- Thursday: 🇺🇸 US President Trump and President Xi Summit, 🇪🇺 Eurozone Ifo Business Climate
- Friday: 🇪🇺 Eurozone GfK Consumer Confidence, 🇺🇸 US Durable Goods Orders
The contents of this article do not constitute financial advice and are provided for general information purposes only. While the content is based on information believed to be accurate at the time of publication, no guarantee is provided.
