Home›Forex›Major Pairs›GBP/USD slips as the dollar firms ahead of key US infl…

GBP/USD slips as the dollar firms ahead of key US inflation data

GBP/USD was trading around 1.3500 in Asia as FedWatch pricing for a 25 bps September hike softened to nearly 48%, down from 52% the prior day.

Reported · Written up by our desk · Major Pairs

GBP/USD edged lower during Asian hours on Wednesday after staying flat the previous day, holding losses near the 1.3500 level as a stronger US dollar weighed on sterling.

FXStreet said the dollar’s advance comes ahead of a crucial US inflation release that investors expect to influence the Federal Reserve’s next rate decision, following the central bank’s July hold.

Market expectations were described as split after July’s steady rates, with odds for a 25 basis point hike in September easing to nearly 48% from 52% the day before, according to CME FedWatch Tool.

The outlet also pointed to geopolitical uncertainty around US and Iran diplomacy and shifting sentiment about talks involving the Strait of Hormuz, while noting Scotiabank’s view that recent pound moves are largely driven by positioning and options pricing that show less demand for downside protection.

Latest closeGBP/USD 1.351 ▲0.1%

More like this

Sources