is trading at 1.2601, gaining 0.19%.The current week presents a busy, contrary to the UK. On the latter, if not for a speech of the Bank of England Chief Economist Huw Pill and the release of housing prices, the GBP/USD fate would lie mainly on the US Dollar dynamics.
However, Monday’s price action was mainly driven by a risk-on impulse, which weighed on global bond yields, particularly in the United States . US bond yields tumbled across the board, undermining the greenback, as shown by , a basket of six currencies that measures their performance against the buck, dropped 0.12%, down at 104.060.was seen as hawkish, as he emphasized the Fed’s commitment to tackle inflation, justifying higher rates if growth continues to be above trend, while the labor market remains tight. He added the US central bank is still data-dependent, noting they would proceed “carefully” when deciding regarding momentary policy.
Following Powell’s remarks, money market futures are confident the Fed will skip a rate hike in September. Nonetheless, for November, the story is different, with traders expecting a 25 bps rate hike, as shown by odds close to 50%, as shown by the CME FedWatch Tool. Given the backdrop, the GBP/USD pair could resume its downtrend based on the latest data. However, a busy US economic docket could weaken the greenback. On Tuesday, jobs data, consumer confidence, and housing data could ignite volatility in the pair. Any surprises that justify further tightening can pave the way for further US Dollar strength and Sterling weakness.After falling below the August 3 low of 1.2620, the GBP/USD extended its losses below the 1.
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Source: FXStreetNews - 🏆 14. / 72 Read more »
Source: FXStreetNews - 🏆 14. / 72 Read more »
Source: FXStreetNews - 🏆 14. / 72 Read more »