GBP/USD is trading around 1.2560 in the early Asian session on Tuesday. The weaker US Dollar and improved risk sentiment are supporting the pair. Investors are watching UK employment data, a speech by BoE’s Pill, and US Producer Price Index later today.
Fed officials are stressing the need to keep interest rates steady until inflation returns to target levels. Markets are predicting a 25 bps cut in August and a total of 50 bps cuts by 2024.
There is speculation that the Bank of England may lower interest rates in the summer, with traders pricing in a 25 bps cut in August and a total of 50 bps cuts by 2024. BoE governor Andrew Bailey mentioned monitoring data releases before deciding on rate cuts. UK employment data for April could impact the Pound Sterling and GBP/USD pair.