Home›Forex›Major Pairs›GBP/USD edges toward 1.3550 as Fed hike bets fade

GBP/USD edges toward 1.3550 as Fed hike bets fade

Traders are pricing only a 35% chance of a Fed rate increase at the September 15-16 meeting, with a 69% odds of a hike by December, according to CME FedWatch.

Reported · Written up by our desk · Major Pairs

FXStreet reports that GBP/USD is gaining momentum in early Asian trading, moving toward 1.3550 as the US dollar softens against the British pound.

The outlet links the move to cooler US inflation readings and a pullback in expectations for a Fed rate hike, after weaker US Retail Sales and softer-than-expected CPI and PPI data last week.

FXStreet says attention is turning to the UK employment report later Tuesday, with the UK unemployment rate projected to fall to 4.8% in June from 4.9% in May.

The report also notes market pricing for the BoE, including at least one rate increase this year, and highlights that GBP/USD’s bullish bias persists while the pair trades above the 100-day SMA.

Latest closeGBP/USD 1.354 ▲0.3%

More like this

Sources