Pound outperforms the US dollar as Fed rate decrease bets remain strong.

On Friday, the Pound Sterling (GBP) extended its winning streak to a seventh trading session versus the US Dollar (USD). The GBPUSD pair trading close to a year-to-date high of 1.3130. As the US Dollar (USD) struggles to maintain Thursday’s upward rise. Which was fueled mostly by better-than-expected flash United States (US) S&P Global PMI data for August.
Furthermore The US Dollar Index (DXY) tracks the The greenback’s value versus six major currencies hovering around 101.40. And projected to move sideways ahead of Federal Reserve (Fed) Chair Jerome Powell’s speech at 14:00 GMT in the Jackson Hole (JH) Symposium.

Investors are looking forward to Fed Powell and BoE Bailey’s talks for new insights into the US and UK interest-rate outlooks.

Investors looking for clues about the probable size of interest rate decreases in September, given. That the Fed is largely expected to shift to policy normalization. Market participants will also expect some direction on interest rates and economic performance for the remainder of the year.
According to Reuters, Philadelphia Fed President Patrick Harker stated in an interview at the JH event on Thursday. That the central bank should prioritize a consistent course of easing, which should begin in September, above the extent of policy action.
Moreover Separately, Boston Fed Bank President Susan Collins expressed support for interest rate decreases in September. Collins remained confidence that the Fed will achieve its aims without causing a recession.

Daily Market movers: Pound Sterling outperforms on optimism about the BoE’s delayed policy-easing process.

The pound sterling is performing strongly against its major peers. With the exception of Asia-Pacific currencies, on robust expectations. That the Bank of England’s (BoE) policy-easing cycle will be slower than that of other major central banks. Robust forecasts for a slower BoE policy normalization process are supported by a strong UK economic outlook and continued high wage growth.
Moreover Flash The UK S&P Global/CIPS PMI data for August, issued Thursday, revealed. That overall business activity expanded at a faster rate to a four-month high of 53.4, driven by a Strong growth in both manufacturing and the services sector. The research also indicated a significant reduction in the backlog of work. And favorable sentiment toward the corporate outlook, pointing to solid employment growth.
These good economic prospects, unlikely to dampen market speculation of another interest rate drop by the BoE this year. As input prices in the service sector fell to their lowest level in almost three and a half years in August.

The BoE is projected to progressively reduce interest rates.

This is a relief for BoE policymakers, who were hesitant to decrease interest rates. While inflation in the service sector remained high.
Aside from Powell, investors are looking forward to Bank of England Governor Andrew Bailey’s lecture at the JH Symposium. Which is set for 19:00 GMT. Andrew Bailey is likely to provide new clues on whether the BoE will lower interest rates in September. provide new clues on whether the BoE will lower interest rates in September.