GBPUSD reached a three-month high of 1.2733.
GBPUSD struggles to extend its winning streak that began on November 23, hovering around 1.2700 throughout Thursday’s Asian session. However, on Wednesday, the GBPUSD pair reached a three-month high of 1.2733 due to a weaker US Dollar (USD).
Andrew Bailey, Governor of the Bank of England, is dedicated to take the necessary steps to reduce inflation to the 2.0% objective.
Andrew Bailey, Governor of the Bank of England (BoE), stated. That the central bank is dedicated to take the necessary steps to reduce inflation to its 2.0% objective. He stressed that, despite his best efforts. The BoE has not seen enough progress to be confident in meeting this target. This hawkish remark may have given the Pound Sterling (GBP) a boost.
The US Dollar Index is divided as a result of the contradictory messages from Federal Reserve (Fed) members.
The recent decrease in US bond yields can be ascribed to the prevalent favorable perception. That the Federal Reserve (Fed) will end its interest rate hikes. However, as of Thursday’s press time, the 10-year and 2-year US Treasury rates are somewhat higher, at 4.27% and 4.65%, respectively.
By press time, the US Dollar Index (DXY) was hovering around 102.80. The DXY appears to be uncertain. Owing to mixed views from Federal Reserve (Fed) members. Loretta Mester, President of the Cleveland Federal Reserve (Fed), stated. That any decision to impose additional interest rate hikes will be taken with caution. Considerations based on facts are essential.
The indicated willingness of Governor Michelle Bowman to keep the possibility of further rate hikes alive raises concerns about the sustainability of inflationary pressure. Fed Governor Christopher Waller, on the other hand, has urged a more accommodating strategy by not insisting on maintaining high interest rates.
