GBP/USD edges lower to around 1.3500 during early European session.

GBP/USD softens to near 1.3500 as traders pare bets on Fed rate cut

The GBP/USD pair trades on a softer note near 1.3500 during the early European session on Tuesday. The US Dollar (USD) posts modest gains against the Pound Sterling (GBP) as traders pared bets on a rate cut at the US Federal Reserve (Fed) September 16-17 meeting. The UK July Consumer Price Index (CPI) inflation report will take center stage later on Wednesday.

A report last week showed that the US Producer Price Index (PPI) increased by the most in three years in July amid a surge in the costs of goods and services. This, in turn, prompted traders to reduce expectations of rate reduction, supporting the Greenback.  The Fed is expected to cut interest rates in September and once more this year, according to most economists from the Reuters poll. Read more…

GBP/USD softens ahead of data-heavy week

GBP/USD saw a softer start to the new trading week, easing back around four-tenths of one percent through the opening market sessions. The US Dollar (USD) pared some of last week’s overall losses, trimming near-term gains for the Pound Sterling (GBP) on Monday.

The week starts on a quiet note, with little of note on the data docket. That all changes on Wednesday, with a fresh salvo of key economic data from the United Kingdom (UK) and the start of this year’s Jackson Hole Economic Symposium hosted by the Federal Reserve (Fed) Bank of Kansas. Read more…

GBP/USD holds near 1.3540 as traders await Ukraine-Russia outcome, Powell speech

GBP/USD steadies during the North American session, down a minimal 0.08% amid a scarce economic docket on both sides of the Atlantic. Nevertheless, market participants are optimistic due to a possible ceasefire or a peace agreement between Ukraine and Russia, following the Trump-Putin meeting on Friday and ahead of the talks between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy later on Monday. The pair trades around 1.3540 at the time of writing.

Geopolitics are setting the tone at the beginning of the week, though US data, the Federal Reserve (Fed) Chair Jerome Powell’s speech at Jackson Hole, and inflation figures in the UK might set the tone for the week. Read more…