The GBP/USD pair extended its rally and traded near 1.2688 as the US dollar weakened [673f7fd0]. Despite expectations of early rate cuts by the Bank of England (BoE), the Pound Sterling edged higher against the US dollar [673f7fd0]. Fed Chair Powell has expressed the need for more evidence before considering a rate cut [673f7fd0]. However, financial markets still anticipate a rate cut from the BoE on August 1 [673f7fd0]. Traders have raised their bets on a Fed easing cycle, with a 63% probability of a rate cut in September [673f7fd0]. Investors are anticipating the BoE to start cutting interest rates in August [673f7fd0].
The GBP/USD pair is currently trading flat below the 1.2700 level and is awaiting impetus from US data and the release of FOMC meeting minutes [3bf8aafc]. The pair is struggling to gain direction due to mixed fundamental cues, including August BoE rate cut bets and the upcoming UK general elections [3bf8aafc]. The US Dollar is facing pressure after Fed Chair Jerome Powell's dovish remarks, indicating a likely rate-cutting cycle starting in September [3bf8aafc]. Traders are cautious and waiting for more cues about the Fed's rate-cut path before placing aggressive bets [3bf8aafc]. The focus is on the release of FOMC meeting minutes and US economic data, including the ADP report on private-sector employment and the ISM Services PMI [3bf8aafc]. The immediate market reaction is expected to be limited ahead of these key events [3bf8aafc].
