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Pound reverses lower as Burnham sticks to fiscal rules
GBP/USD trades around 1.3425 after a daily high near 1.3481, with investors also watching Middle East-US Iran tensions and upcoming UK and US data.
The British pound fell after reversing early gains, as Andy Burnham was named prime minister and reiterated he would stick to the fiscal rules set by former chancellor Rachel Reeves, who recently resigned, FXStreet reported. GBP/USD was last around 1.3425 after reaching a daily high of 1.3481.
FXStreet said sentiment cooled even as investors remained mindful of ongoing US and Iran hostilities in the Middle East, which have kept concerns elevated about potential disruption to oil supply. The outlet also pointed to renewed speculation that the Federal Reserve could raise rates by 25 basis points later this year.
Looking ahead, FXStreet noted the UK calendar this week includes jobs and inflation data, Retail Sales, and the release of flash PMIs for July on preliminary readings. In the US, the Fed is in its blackout period before the July 29 monetary policy meeting.
FXStreet added that traders had priced in a 78% chance the Fed holds rates unchanged, but odds for a 25-basis-point hike at the October 28 meeting have risen above 70%. The outlet also cited expectations for Initial Jobless Claims for the week ending July 18 to increase from 208K to 212K.
Latest closeGBP/USD 1.348 ▼0.5%