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The GBP/USD pair trades on a flat note near 1.3695 during the early Asian session on Monday. Traders weigh what a Federal Reserve (Fed) under Kevin Warsh might look like. The US ISM Manufacturing Purchasing Managers Index (PMI) report will be published later on Monday.  US President Donald Trump named Kevin Warsh to lead the US central bank. Markets anticipate Warsh may lean toward a smaller Fed balance sheet and hold the interest rate higher for longer, which provides some support to the US Dollar (USD) against the Pound Sterling (GBP) “The reaction in the markets to Donald Trump’s nomination of Kevin Warsh to be the next Fed Chair is broadly consistent with our view that the president has made a relatively safe choice,” said John Higgins, chief markets economist at Capital Economics. “The perception seems to be that Warsh is not someone who is ‌firmly in ‌the president’s pocket and that he won’t contribute to a further undermining of the Fed’s independence and fears of currency debasement,” Higgins added.  Financial markets anticipate the Bank of England (BoE) to hold the interest rates at 3.75% at its February meeting. This expectation follows hotter-than-expected UK inflation data and strong Retail Sales figures. According to all but two economists polled by Reuters, the UK central bank will hold its benchmark interest rate at 3.75% at its February meeting, with only a small majority now expecting it to fall to 3.50% in March following a slowdown in better economic news. The expectation of BoE gradual rate cuts could lift the Cable against the USD in the near term.  Pound Sterling FAQs The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting…

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Filed under: News - @ February 2, 2026 2:07 am