GBP/USD holds positive ground around 1.2625 on Wednesday

GBP/USD holds above 1.2600, all eyes on FOMC Minutes

The GBP/USD pair edges higher above the 1.2600 mark during the early Asian session on Wednesday. The optimistic comments from Bank of England (BoE) Governor Andrew Bailey boosted the Pound Sterling (GBP). The major pair currently trades near 1.2625, unchanged for the day.

Investors lower their bets on the interest rate cuts from the Federal Reserve (Fed) since the US January Producer Price Index (PPI) data last week indicated elevated inflationary pressure in the US economy. The markets expect the first rate cuts from the Fed from the May to June monetary policy meeting. The Federal Reserve Open Market Committee’s (FOMC) minutes for January’s policy meeting could provide some insight into the trajectory of interest rates. Read more…

GBP/USD climbs amid optimistic BoE’s UK economic outlook

The Pound Sterling rose against the US Dollar in the mid-North American session as US traders got back to their offices. Reasons like the Bank of England (BoE) Governor Andrew Bailey stating that Britain’s economy could fare better than expected propelled the GBP/USD pair up. At the time of writing, the major exchanges hands at 1.2643, up 0.40%.

UK’s economic calendar featured BoE speakers. BoE’s Michael Broadbent said the question has moved on from the degree of policy restrictiveness to its duration. He added that more persistent components of inflation “may have peaked” while not ruling out policy easing at some time. Read more…