GBP/USD consolidates above 1.2600 on hawkish BoE members, awaits US data

GBP/USD moves sideways around 1.2610 during the European session on Monday. The weakening of the US Dollar (USD), driven by growing speculation that the Federal Reserve has completed its interest rate hikes, has worked in favor of the Pound Sterling (GBP).

Additionally, the Cable pair could receive an extra boost due to hawkish remarks from Bank of England (BoE) Governor Andrew Bailey. In a Monday interview, Bailey expressed the view that "bringing inflation down to 2% will be hard work" and emphasized that it's premature to discuss rate cuts. He also expressed concern about the slowdown in the supply side of the economy.

BoE Chief Economist Huw Pill recently conveyed the central bank's commitment to maintaining a strong stance against inflation. Pill emphasized that the BoE cannot afford to loosen its tight monetary policy.

The US Dollar Index (DXY) faces challenges despite improved US Treasury yields. While there's speculation about the potential for easing, Federal Reserve (Fed) officials have stressed the importance of further tightening. Their resolute stance signals a dedication to carefully assessing incoming data before making any policy decisions.

Market participants appear to be treading cautiously ahead of a series of crucial economic readings from the United States (US). The upcoming data, including the Gross Domestic Product (GDP) Annualized for the third quarter and the Core Personal Consumption Expenditures (PCE) Price Index, a key inflation indicator, are anticipated to provide a comprehensive view of the country's economic performance.