The GBP/USD pair continues to rise near 1.2688 as the US dollar weakens in Wednesday’s early Asian trading session. Fed Chair Powell acknowledges progress on inflation but is cautious about cutting rates. The BoE is expected to cut rates on August 1.
The GBP/USD pair is trading positively for the fifth straight day around 1.2688 in early Asian trading on Wednesday. The USD Index (DXY) is below 106.00, supporting the pair. Investors are watching for US economic data and FOMC Minutes later in the day.
Fed Chair Powell mentioned that US inflation is easing, but he wants more evidence before considering rate cuts. The US economy and job market remain strong, giving the Fed time to decide on rate cuts. Chicago Fed President Goolsbee sees signs of economic weakness, pushing traders to bet on a Fed easing cycle.
Despite expectations of rate cuts by the BoE, the Pound Sterling is strengthening against the USD. Investors anticipate the BoE to cut rates at the upcoming August meeting. The Pound Sterling is influenced by monetary policy decisions by the Bank of England and economic indicators such as GDP and employment data.
Overall, the GBP/USD pair is on an upward trend as the US dollar weakens and the BoE is expected to cut rates in August.