The post Pound Sterling clings to gains near 1.2800 with Fed Powell’s testimony in focus appeared on BitcoinEthereumNews.com.

The Pound Sterling holds gains against the US Dollar with a focus on Fed Powell’s testimony. BoE’s Haskel argued in favor of holding interest rates steady at their current levels. This week, investors will pay close attention to the US CPI and UK factory data. The Pound Sterling (GBP) ranges above 1.2800 against the US Dollar (USD) in Tuesday’s early London session. The GBP/USD pair turns quiet as investors await the Federal Reserve (Fed) Chair Jerome Powell’s semi-annual Congressional testimony, which is scheduled at 14:00 GMT.  Fed Powell is expected to acknowledge some progress made on inflation and will remain data-dependent for rate cuts. Powell could continue to refrain from providing any timeframe for rate cuts and emphasize the need to keep interest rates higher until policymakers see inflation declining for months. However, he could also show some concerns over moderating United States (US) labor market strength The overall appeal of the Cable is quite firm as market speculation for the Fed to begin reducing interest rates from the September meeting has deepened. According to the CME FedWatch tool, 30-day Federal Funds Futures pricing data shows that the probability of rate cuts in September has improved to 77% from 65.6% recorded a week ago. The expectations for early Fed rate cuts have been prompted by the US Nonfarm Payrolls (NFP) report for June, which indicated that the labor market has lost momentum. This week, the major trigger for the US Dollar will be the US Consumer Price Index (CPI) data for June, which will be published on Thursday. The US CPI report is expected to show that the core inflation, which strips off volatile food and energy items, grew steadily by 0.2% and 3.4% on a monthly and annual basis, respectively. Signs of stalling progress or reverse in disinflation would dampen…

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Filed under: News - @ July 9, 2024 6:12 am