GBP/USD continues its upward trend, hovering near 1.3105 in early European trading on Friday. The latest remarks from Fed officials hint at potential rate cuts, weakening the US Dollar against its major counterparts.
Investors are closely watching the speeches by Bank of England Governor Andrew Bailey and Fed Chair Jerome Powell at the Jackson Hole Symposium for clues on interest rate movements. The Fed’s recent minutes suggest a consensus on lowering rates to combat below-target inflation, with Boston Fed President Susan Collins voicing support for imminent rate cuts.
On the UK front, upbeat PMI data has delayed expectations of a BoE rate cut, boosting the Pound Sterling. The latest figures show a stronger-than-expected performance in both Manufacturing and Services sectors, signaling a resilient economy.
Overall, the market sentiment favors a dovish stance from central banks, with the US Dollar under pressure and the Pound Sterling gaining ground. Traders are now pricing in reduced odds of a September rate cut by the BoE, indicating a positive outlook for GBP/USD in the near term.
Key Takeaways:
- GBP/USD trades near 1.3105 amid Fed rate cut speculations
- BoE and Fed speeches to provide clarity on interest rate direction
- Upbeat UK PMI data delays expectations of a BoE rate cut
- Market sentiment favors Pound Sterling strength against the US Dollar
