⚡ British Pound gathers strength to near 1.3550 as Fed hike bets fade, UK jobs data loom

The British Pound surged to near 1.3550 against the US Dollar during early Asian trading Tuesday as weakening Federal Reserve rate hike expectations weighed on the greenback. The move comes after cooler-than-expected US inflation data prompted traders to significantly scale back bets on further Fed tightening, putting downward pressure on the Dollar across major pairs.

The GBP/USD rally reflects a sharp reassessment of the US monetary policy outlook, with markets now pricing in reduced odds of additional rate increases. This shift has given Cable a boost just as UK employment data approaches, which could provide further direction for Sterling depending on labor market strength. Traders and brokers should monitor the upcoming UK jobs release closely, as robust employment figures could extend the Pound’s gains while weak data may trigger profit-taking from current levels.

FXnCO Insight

GBP/USD long positions near 1.3550 are vulnerable to reversal if Wednesday’s UK employment data disappoints, making tight stop-losses essential for traders riding this Dollar-weakness driven rally.

Source: FXStreet