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Pound rises versus dollar as Fed rate-hike odds firm

GBP/USD traded around 1.3230 during Asian hours, with money markets pricing a 65.9% chance of an October Fed rate hike, up from 57.6% a week ago.

Reported · Written up by our desk · Major Pairs

The British pound strengthened against the US dollar for a second straight session, with GBP/USD trading around 1.3230 during Asian hours on Monday, as the US dollar weakened despite hawkish signals from Federal Reserve officials, according to FXStreet.

FXStreet reported that traders shifted attention to upcoming US data this week, including key employment figures and the Fed’s preferred inflation gauge. The outlook for the dollar was also shaped by concerns from multiple central bank officials about persistent inflation.

The piece said Cleveland Fed President Beth Hammack warned against allowing higher prices to become the norm, while Philadelphia Fed President Anna Paulson suggested modest further tightening may be warranted.

FXStreet added that investors are also watching geopolitical developments in the Middle East, including President Trump’s rejection of Iran’s proposal to reopen the Strait of Hormuz, alongside Fed related repricing in rate hike expectations.

Latest closeGBP/USD 1.325 ▲0.0%

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