GBP/USD rebounds from lows since November amid expectations of the Fed delaying rate cuts. The escalated Middle-East tension could bolster the demand for the US Dollar. BoE could reduce policy rates to around 4.75% by 2024, down from the current rate of 5.25%. GBP/USD gains ground amid a stable US Dollar , trading around 1.2460 during Asian hours on Monday. The US Dollar maintains its position below its peak since November 2023, potentially restricting the upward momentum of the GBP/USD pair.
On the other side, on Friday, the Pound Sterling dipped against the US Dollar to its lowest level since November, reaching 1.2426. Heightened tensions in the Middle East likely prompted traders to seek refuge in the US Dollar. However, market forecasts for interest rate cuts by the Bank of England have been adjusted, with the policy rate now expected to decline to around 4.75% by the end of 2024, down from the current rate of 5.25%.
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