The post Pound Sterling softens below 1.3350 on renewed US Dollar demand appeared on BitcoinEthereumNews.com.

The GBP/USD pair loses ground to around 1.3330 during the Asian trading hours on Thursday. The major pair retreats from nearly a two-month high amid renewed US Dollar (USD) demand. However, the rising bets of a Federal Reserve (Fed) rate cut next week might cap its downside. Traders will take more cues from the US weekly Initial Jobless Claims report later on Thursday.  Weaker US economic data this week, including Manufacturing PMI and ADP Employment Change, have cemented the case for a rate reduction from the US central bank at the December meeting. This, in turn, could weigh on the Greenback and create a tailwind for the major pair.  Traders are currently pricing in an 89% probability of a quarter-point rate cut next week, according to the CME FedWatch tool, with an expected 89 basis points (bps) of easing by the end of next year.   US President Donald Trump said on Tuesday he plans to announce his choice to succeed Jerome Powell as head of the Fed early next year. Reuters reported that White House economic adviser Kevin Hassett has emerged as the frontrunner to be the next Fed chair. Hassett is seen as a close ally who supports Trump’s call for quicker and deeper interest rate reduction to stimulate the economy, which might undermine the USD.  On the other hand, the UK Autumn November budget has reinforced bets for a December rate cut from the Bank of England (BoE), which could weigh on the Cable. UK Prime Minister Keir Starmer emphasized the need to bring inflation and interest rates down to boost business investment and economic growth. A majority of analysts expect the UK central bank to cut interest rates to 3.75% in December, with markets pricing in a 90% chance.   Elesewhere, BoE policymaker Catherine Mann said on Wednesday that US Dollar…

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Filed under: News - @ December 4, 2025 4:23 am