The British Pound slipped below 1.3250 against the US Dollar during Asian trading hours on Tuesday, weighed down by expectations of a steady monetary policy path from the Bank of England while the Federal Reserve maintains a more hawkish stance. The GBP/USD pair traded around 1.3240 as the Greenback found support from potential further Fed rate increases, creating a divergence between US and UK monetary policy outlooks.
Sterling’s weakness reflects market positioning ahead of critical US jobs data, which could provide further direction on Fed policy trajectory and amplify Dollar strength. The currency pair faces immediate pressure as traders reassess the interest rate differential between the two central banks, with the BoE appearing less aggressive than its American counterpart. UK traders and currency desks should prepare for heightened volatility as US employment figures approach.
FXnCO Insight
Watch for GBP/USD support at 1.3200 and monitor US jobs data closely, as stronger employment numbers could accelerate Sterling’s decline toward key technical levels.
Source: FXStreet