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Pound rises to three-month highs near 1.3570 on weaker dollar
GBP is supported by shifting Fed expectations, with CME FedWatch showing September rate hike odds cut to 30% from above 50% a week earlier.
The British pound extended gains for a second straight day, pushing cable to three-month highs around 1.3570 as investors trimmed US dollar long positions, according to FXStreet.
FXStreet said the move reflects a more dovish repricing of Federal Reserve policy, with markets concluding the Fed will not hike interest rates in September and likely not for the rest of the year either.
It pointed to US data released last week, including July retail sales falling 0.6% versus a 0.1% forecast, July nonfarm payrolls coming in weaker than expected, and signs of moderating inflation from producer and consumer price figures.
FXStreet also cited softer UK data, noting that while UK GDP confirmed moderate growth in Q2, July industrial production fell unexpectedly, adding uncertainty around Bank of England policy plans.