The Pound Sterling outperforms the US Dollar as Fed rate-cut bets remain firm.
Investors await the speeches from Fed Powell and BoE Bailey to get fresh guidance on the US and the UK interest-rate outlook.
The BoE is expected to cut interest rates gradually.
The Pound Sterling (GBP) extends its winning streak for a seventh trading session against the US Dollar (USD) on Friday. The GBP/USD pair trades within a touching distance of a year-to-date high of 1.3130 as the US Dollar (USD) struggles to hold its Thursday’s upward move, which was mostly driven by better-than-projected flash United States (US) S&P Global PMI data for August.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, hovers near 101.40 and is expected to perform sideways ahead of Federal Reserve (Fed) Chair Jerome Powell’s speech at 14:00 GMT in the Jackson Hole (JH) Symposium.
Investors will look for cues about the potential size of interest rate cuts in September, given that the Fed is widely anticipated to pivot to policy normalization. Market participants will also expect some interest-rate guidance and economic performance for the rest of the year.
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