The Pound Sterling (GBP) is holding onto gains near a two-month high of 1.2700 in Monday’s European trading session. This increase is due to the US Dollar (USD) weakening as markets anticipate a potential interest rate cut by the Federal Reserve (Fed) starting in September.
The GBP/USD pair is showing strength as the USD loses ground. Market sentiment remains positive, supporting the Pound’s upward movement.
Looking ahead, if GBP/USD fails to break above the 1.2700 level, there could be a correction lower. Without any major economic data releases, investors will closely monitor statements from Fed officials for further insight.
Overall, the Pound Sterling’s performance against the US Dollar will continue to be influenced by market sentiment and expectations regarding the Fed’s monetary policy decisions.