FX.co ★ GBP/USD

GBPUSD 1-H Time Frame Update GBP/USD rises as the US dollar is challenged by the dovish tone surrounding the Fed's policy outlook. Fed Chair Jerome Powell said the central bank is on track to decrease interest rates by another 25 basis points in October. GBP/USD recovers losses from the previous two sessions, trading around 1.3350 during Asian hours on Wednesday. The pair rises as the US Dollar (USD) falls on the greater chance of additional rate cuts by the Federal Reserve (Fed) in 2025. According to the CME FedWatch Tool, markets now expect the Fed to drop interest rates by roughly 94% in October and 93% in December. The odds of additional Fed rate cuts increased after US Federal Reserve (Fed) Chair Jerome Powell stated on Tuesday that the central bank is on track to deliver another quarter-point interest-rate cut later this month, despite the fact that a government shutdown significantly reduces its view of the economy. Powell emphasized the low hiring rate and warned that it could fall even more. Susan Collins, President of the Boston Fed, stated that policy is not set in stone; there are scenarios that would keep rates stable, and policy would remain restrictive even with further easing. Traders will most certainly hear comments from Fed officials such as Stephen Miran, Christopher Waller, and Jeff Schmid later in the day. The GBP/USD pair's upside may be restricted as the Pound Sterling (GBP) struggles due to signals of a cooling UK labor market, which has raised expectations of more interest rate reduction by the Bank of England (BoE) in the remainder of the year. According to Reuters, traders expect the BoE to decrease interest rates by another 46 basis points (bps) this year.