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GBP/USD stays weak as USD firms and oil prices lift inflation fears

FXStreet says GBP/USD traded around 1.3210 in Asian hours, while traders eye Fed speeches and December rate-hike pricing remains elevated at 78.3%.

Reported · Written up by our desk · Major Pairs

GBP/USD remained subdued for a second straight day, trading around 1.3210 during Asian hours on Thursday, as the US dollar held firm, FXStreet reported.

The dollar’s strength was tied to elevated US Treasury yields, which have climbed to levels near their highest since 2002, while a spike in oil prices renewed concerns about persistent inflation and increased the case for higher interest rates.

FXStreet added that traders are looking for directional cues from upcoming Federal Reserve speeches by Christopher Waller and Alberto Musalem.

According to the outlet, Fed meeting minutes showed policymakers were united in supporting a September rate hike, and CME’s FedWatch tool indicated a 78.3% probability of another rate hike in December.

Latest closeGBP/USD 1.321 ▼0.2%

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