GBP/USD pushed back into the high end after Fed nods at inflation progress.
BoE rate cut expectations also tick higher.
Key US inflation data looms ahead.
GBP/USD rallied on Wednesday, clipping into a four-week peak after broad-market expectations of future rate cuts reignited following Federal Reserve (Fed) Chairman Jerome Powell’s wrap-up of the two-day Semi-Annual Monetary Policy Report. UK data is limited to mid-tier Industrial Production figures on Thursday, but looming US Consumer Price Index (CPI) inflation will draw plenty of investor eyes during Thursday’s American market session.
Rate-cut-hungry markets decided that Fed Chair Powell’s appearances before Congressional committees was close enough to dovish this week, with Powell giving a cautious nod to recent progress on inflation. Risk appetite has recovered as investors lean back into hopes for a September rate cut, and investors will be looking for an undershoot of US CPI inflation on Thursday, with median market forecasts expecting annualized core CPI inflation in June to hold steady at 3.4%.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.