GBP/USD rises to near 1.3350 due to rising Fed rate cut bets
GBP/USD recovers its losses registered in the previous two successive sessions, trading around 1.3350 during the Asian hours on Wednesday. The pair appreciates as the US Dollar (USD) declines on the increased likelihood of further rate cuts by the Federal Reserve (Fed) in 2025. CME FedWatch Tool indicates that markets are now pricing in nearly a 94% chance of a Fed rate cut in October and a 93% possibility of another reduction in December.
The odds for further Fed rate cuts increased after the US Federal Reserve (Fed) Chair Jerome Powell stated on Tuesday that the central bank is on track to deliver another quarter-point interest-rate reduction later this month, even as a government shutdown significantly reduces its read on the economy. Powell highlighted the low pace of hiring and noted that it may weaken further. Read more…
GBP/USD slides toward 1.33 as weak UK jobs data fuels BoE rate cut bets
GBP/USD prolongs its losses for the second consecutive day on Tuesday as soft data in the United Kingdom (UK) justifies the need for lower interest rates by the Bank of England (BoE). The extension of the government shutdown in the US keeps the schedule light, except for Federal Reserve (Fed) Chair Jerome Powell’s speech.
Sterling trades at around 1.3300 after hitting a daily high of 1.3352 and failing to crack last Friday’s peak of 1.3370, following the latest employment report in Britain. The data showed that the unemployment rate rose, and wage earnings slowed in the three months to August. Read more…
