Pound Sterling Price News and Forecast: GBP/USD gains as Powell sees potential risks to US labor market


Pound Sterling gains as Fed Powell sees potential risks to US labor market

The Pound Sterling (GBP) edges higher against the US Dollar (USD) in Wednesday’s London session after a mild correction from almost a four-week high of 1.2850 this week. The broader appeal of the GBP/USD pair remains firm amid strong speculation that the Federal Reserve (Fed) will start reducing interest rates during the September meeting. 

The odds for the Fed pivoting to policy normalization remain firm even though Fed Chair Jerome Powell reiterated in his semi-annual Congressional testimony on Tuesday, refrained from providing any specific rate-cut path for this year. Powell argued in favor of maintaining interest rates at their current levels for long until they get evidence that inflation will return to the desired rate of 2%. Read more...

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GBP/USD Forecast: Pound Sterling stabilizes near 1.2800 as markets await next catalyst

GBP/USD edged lower during the American trading hours on Tuesday and closed the day in negative territory. The pair holds steady near 1.2800 in the European session on Wednesday as investors refrain from taking large positions while awaiting the next fundamental driver.

Federal Reserve (Fed) Chairman Jerome Powell presented the Semi-Annual Monetary Policy Report and responded to questions before the Senate Banking Committee on the first day of his Congressional testimony on Tuesday. Read more...

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