GBP/USD paused its three-day winning streak as the new week began cautiously, with investors eyeing Fedspeak for hints of rate cuts. The US Federal Reserve’s Chairman Jerome Powell and San Francisco Fed President Mary Daly provided little guidance on the timing of rate cuts, leaving markets uncertain. Rate markets are banking on a September rate cut, with 100% odds of a 25 basis point decline in the fed funds rate.
Upcoming data releases include US Retail Sales and UK CPI inflation, which are expected to show a cooling trend in economic activity. GBP/USD saw a brief pullback on Monday, hovering below the 1.3000 handle after hitting a 12-month high at 1.29949.
The Pound Sterling (GBP) is the oldest currency in the world and the official currency of the United Kingdom. It is heavily influenced by the Bank of England’s monetary policy decisions, which aim for price stability. Economic indicators like GDP, PMIs, and employment data also impact the value of the GBP. Additionally, the Trade Balance plays a significant role in determining the strength of the Pound Sterling based on export and import dynamics.