GBP/USD pair slightly advances in Asian session, but there is no sustained increase. Spot prices are near the psychological level of 1.2500, close to a three-month low.

The Bank of England’s recent statement that it is nearing the end of its rate-hiking cycle and the cooling of the UK labour market have supported the GBP/USD pair, despite concerns about the Bank’s near-end of its cycle.

At its policy meeting the following week, the Federal Reserve is anticipated to pause, but markets are still pricing in a 25 basis point rate hike by the end of the year, which is supported by encouraging US macroeconomic data and uncoating inflation.

The US central bank’s tightening of policies and the cautious market environment are anticipated to support rising Treasury bond yields, preventing the GBP/USD pair from strengthening further. Trades are centred on UK macroeconomic data.

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