GBP/USD Climbs to 12-Week High — A Signal for Prop Traders

Key Takeaways

• GBP/USD strengthened to ~1.2630 as the US dollar eased.
• UK Manufacturing PMI unexpectedly rose to 50.1—first expansion since July.
• All eyes on upcoming US PCE data for inflation cues.
• Volatility is breaking out—ideal conditions for funded challenge traders.

The British pound rose against the weakening US dollar today, pushing GBP/USD into fresh 12-week highs around 1.2630. Over the past month, the pair has climbed roughly 4%, benefiting from broader dollar weakness and stronger UK data.

Earlier today, sterling dipped as low as 1.2600, but rebounded solidly amid continued pressure on the dollar, which is down ~3% for the month.

UK Manufacturing Returns to Growth

The UK’s preliminary November Manufacturing PMI surprised markets by hitting 50.1, jumping above October’s 48.7 and crossing into expansionary territory. This marks the first time since July that the data has entered growth mode, hinting that British business activity might be recovering.

A PMI reading above 50 signals expansion; below 50 signals contraction. Analysts had forecast a flat 48.7, so the upside move suggests unexpected strength in UK industry.

Still, Bank of England officials remain cautious. Inflation holds at 4.6%, and despite 14 consecutive rate hikes, the BoE has held rates steady at 5.25% in recent meetings. Governor Andrew Bailey noted it’s “far too early” to consider cuts.

US Dollar Undermined

On the US front, dollar weakness continues. Traders are now shifting focus toward the PCE inflation report, due this Thursday. The Fed’s preferred inflation metric, Core PCE is expected to ease to 3.1% YoY from September’s 3.4%.

A cooler reading could bolster hopes that the Fed is winning the inflation fight—but any upside surprise may spark further volatility. The Fed Beige Book, released earlier in the week, offered mixed regional data, underscoring the uncertainty ahead.

Opportunity for Funded Traders

This environment—volatile, uncertain, driven by macro surprises—is exactly where prop-style traders shine. Price swings in pairs like GBP/USD, EUR/USD, and USD/JPY offer fertile ground for strategy testing and real-time decision-making.

At Xpert Funding, all challenges run in a simulated demo environment so that when you execute, you trade with confidence. Join our funded challenge today and leverage market volatility for your edge.

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