Risk-Off Tech Selloff Adds Dollar Bid, Presses GBP/USD

Broad risk-off sentiment triggered by Anthropic's call for an AI slowdown and a tumble in tech shares is spilling into currency markets, with the dollar picking up safe-haven flows that are weighing on GBP/USD. Stock futures sliding alongside oil prices rising has created a classic flight-to-safety dynamic ahead of the Fed decision.

This risk-averse backdrop compounds the dollar strength already building from hawkish rate-hike bets, putting sterling in a tough spot on two fronts simultaneously—both from yield differentials and from equity-market anxiety pushing capital toward perceived-safe dollar assets.

Cable traders should treat this week's Fed outcome as the key catalyst; a dovish surprise could unwind both the risk-off dollar bid and rate-driven strength, offering GBP/USD a potential relief rally.