Forex
Home›Forex›Major Pairs›GBP/USD holds near 1.33 as Fed and BoE decisions loom
GBP/USD holds near 1.33 as Fed and BoE decisions loom
Sterling is pressured by expectations the Federal Reserve could raise rates, while UK inflation cooled to 2.6% in June and the Bank of England is expected to keep its 3.75% rate unchanged.
GBP/USD was trading around 1.3283 as sterling stayed near a near-one-month low, with investors weighing Middle East developments and upcoming central bank decisions, Action Forex reported. The outlet said the suspension of US strikes on Iran helped ease oil prices and lower inflation risks, but US government bond yields declined only modestly, reflecting cautious market sentiment. The dollar received support from expectations that the Federal Reserve could raise rates as its policy meeting gets underway. In parallel, markets are now focused on the Bank of England meeting on Thursday, where the BoE is expected to hold its policy rate at 3.75%, supported by recent inflation data. Action Forex pointed to June consumer price growth slowing to 2.6% year over year, described as a 15-month low and below the BoE’s own expectations. The outlet also said higher wholesale energy prices have not fully flowed through to regulated tariffs for British households, leaving UK inflation below that of the US and the eurozone, where market expectations still call for rate hikes in September or October. Technically, Action Forex said the H4 chart suggests a downward move, with a consolidation area around 1.3310 and potential downside toward 1.3260 and possibly 1.3190, depending on the outcome of central bank guidance and geopolitical developments. On the H1 chart, the pair is consolidating around 1.3309, extending down to 1.3272, with the next moves tied to a near-term push toward 1.3310 followed by a fall back toward 1.3260.
Latest closeGBP/USD 1.329 ▼0.5%