Pound sterling is up against the US dollar as investors await Fed Powell’s testimony.

During Tuesday’s London session, the Pound Sterling (GBP) traded above 1.2800 against the US Dollar (USD). The GBPUSD pair becomes quiet as investors await Federal Reserve (Fed) Chair Jerome Powell’s semi-annual Congressional testimony, which is due at 14:00 GMT.

Haskel argued in support of keeping interest rates at current levels.

Fed Powell is anticipated to acknowledge some progress in inflation. And will continue to rely on data to determine rate decreases. Powell could continue to avoid from setting a timeframe for rate reduction. And underscore the need to maintain interest rates higher until policymakers see inflation falling for several months. However, he could exhibit some reservations about the reducing United States (US) labor market strength.                                                     The Cable’s overall appeal is strong, since market optimism. That the Fed will begin lowering interest rates following the September meeting has intensified. According to the CME FedWatch tool, 30-day Federal Funds Futures pricing data show. That the chance of rate reduction in September has increased to 77%, up from 65.6% a week earlier. The June US Nonfarm Payrolls (NFP) report. Which showed that the labor market has lost pace, has fueled anticipation for early Fed rate cuts.

Investors will closely monitor the US CPI and UK industrial data.

Pound Sterling (GBP) traded above 1.2800 against the US Dollar (USD). This week, the main catalyst for The US Dollar will be the US Consumer Price Index (CPI) data for June. Which will be released on Thursday. The US CPI report is expected to indicate. That core inflation, which excludes volatile food and energy categories, increased gradually by 0.2% and 3.4% monthly and annually, respectively. Signs of stalled growth or a reversal in disinflation would lower market expectations for Fed rate reduction in September. Whereas soft data would raise them.

Daily Market Movers: Pound Sterling shows strength versus the US dollar ahead of UK GDP statistics.

The Pound Sterling has a quiet performance against its key counterparts as investors transfer emphasis to the United Kingdom’s (UK) monthly Gross Domestic Product (GDP) and factory statistics for May, which will be published on Thursday.
The UK economy is expected to have grown by 0.2% after being flat in April. Furthermore, Manufacturing and Industrial Production are predicted to have grown little after declining in April.
On the monetary policy front, Bank of England (BoE) policymaker Jonathan Haskel recommended for keeping interest rates unchanged as job market pricing pressures remain strong. Haskel stated: “I would rather hold rates until there is more certainty that underlying inflationary pressures have subsided sustainably,” according to reports. Haskel remains concerned about high labor-market inflation as a result of strong pay growth, which is approximately double what is needed to keep pricing pressures under control.
Jonathan Haskel is one of the policymakers that voted the longest for tightening. monetary policies further. Contrary to Haskel’s assertion, traders anticipate that the BoE will begin lowering interest rates at the August meeting.
On the political front, the Pound Sterling overall outlook has remained stable, with the Keir Starmer-led Labour Party winning an overwhelming majority in UK parliamentary elections, bringing political stability to the economy.