GBP/USD remains below 1.3400 as US Dollar gains on Fed caution bets
The post GBP/USD remains below 1.3400 as US Dollar gains on Fed caution bets appeared on BitcoinEthereumNews.com.
GBP/USD edges higher after registering modest losses in the previous session, trading around 1.3380 during the Asian hours on Friday. The pair may further lose ground as the US Dollar (USD) receives support after Thursday’s US Initial Jobless Claims data, which reinforced expectations that the Federal Reserve (Fed) will keep interest rates on hold for the coming months. Data from the US Department of Labor (DOL) showed Initial Jobless Claims unexpectedly fell to 198K in the week ended January 10, below market expectations of 215K and down from the prior week’s revised 207K. The data confirmed that layoffs remain limited and that the labor market is holding up despite an extended period of high borrowing costs. The Greenback may find additional support as Fed funds futures have pushed expectations for the next rate cut back to June, reflecting stronger labor market conditions and policymakers’ concerns over sticky inflation. Meanwhile, US President Donald Trump said he has no plans to dismiss Fed Chair Jerome Powell despite reported Justice Department indictment threats. Trump also indicated he could delay action on Iran while moving ahead with trade measures targeting critical minerals and AI chips. The downside of the GBP/USD pair could be restrained as the Pound Sterling (GBP) could find support as stronger-than-expected UK monthly Gross Domestic Product (GDP) data is likely to temper dovish expectations for the Bank of England (BoE). At its December meeting, the BoE signalled that monetary policy would follow a gradual easing path. Data from the Office for National Statistics showed the UK economy returned to growth, with GDP rising 0.3%, beating forecasts of 0.1%. This followed contractions of 0.1% in September and October after flat growth in August. Pound Sterling FAQs The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official…
Filed under: News - @ January 16, 2026 2:24 am