Home›Forex›Major Pairs›GBP/USD holds near two-month low as dollar outlook fir…

GBP/USD holds near two-month low as dollar outlook firms

FXStreet said the dollar gained after the US dollar index hit a fresh high since July 28, with expectations of another Fed rate hike in October.

Reported · Written up by our desk · Major Pairs

GBP/USD moved into a bearish consolidation phase during Wednesday's Asian session, trading just above a two-month low near 1.3200, according to FXStreet.

The outlet said traders are holding off on new positions ahead of key US data, including the Personal Consumption Expenditures price index, the Fed's preferred inflation gauge, and the final Q2 GDP report.

FXStreet added that a firmer US dollar is acting as a headwind for the pair, pointing to the US dollar index reaching a fresh high since July 28 on Tuesday amid bets for another Fed rate hike in October.

The report also linked the dollar’s strength to rising US bond yields to multi-year highs and ongoing inflationary concerns, which it said could keep GBP/USD capped while markets await the US releases.

Latest closeGBP/USD 1.325 ▲0.1%|Dollar index 101.25 ▲0.3%

More like this

Sources