GBPUSD extended advances on rising assumption that the Fed’s rate-hike cycle has ended.
During the European session on Monday, the GBPUSD pair trades sideways around 1.2610. The Pound Sterling (GBP) has benefited from the depreciation of the US Dollar (USD). Which has been fueled by increased anticipation that the Federal Reserve has completed its interest rate hikes.
The GBPUSD could rise more as a result of hawkish words from Bank of England Governor Andrew Bailey.
Furthermore, the GBPUSD pair could benefit from hawkish remarks from Bank of England (BoE) Governor Andrew Bailey. Bailey stated in a Monday interview. That “bringing inflation”down to 2% will be difficult” and highlighted that discussing rate reduction is premature. He also expressed concern about the economy’s supply-side decline.
The UK’s chief policymaker highlighted that discussing interest rate decreases is premature.
Huw Pill, Chief Economist at the Bank of England, has stated the central bank’s commitment to maintaining a tough stance against inflation. Pill highlighted that the Bank of England cannot afford to relax its stringent monetary policies.
Despite higher US Treasury yields, the US Dollar Index (DXY) faces headwinds. While there has been some talk about possible relaxation. Federal Reserve (Fed) officials have emphasized the significance of additional tightening. Their firm attitude indicates a commitment to thoroughly analyzing incoming evidence before making any policy decisions.
GBPUSD investors appear to be treading carefully ahead of a slew of important economic reports from the United States of America (US). The impending figures, including the GDP Annualized for the Third Quarter. And the Core Personal Consumption Expenditures (PCE) Price Index. A crucial inflation indicator, are expected to provide a comprehensive picture of the country’s economic performance.
