GBP/USD Strengthens Above 1.3350 Amid Dovish Fed and Macroeconomic Trends

Sunday, 29 September 2024, 18:39

GBP/USD is trading stronger above 1.3350 as the Fed adopts a dovish stance and US PCE data signals softer inflation. This shift impacts major currency pairs, drawing investor attention. Experts predict potential interest rate cuts from the BoE by year-end, reflecting ongoing macroeconomic changes.
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GBP/USD Strengthens Above 1.3350 Amid Dovish Fed and Macroeconomic Trends

GBP/USD Trading Strength

GBP/USD remains firm around 1.3385 in Monday’s early Asian session. The recent US PCE inflation figures for August saw a decline, coming closer to the Fed's inflation target, which has encouraged a softer monetary policy outlook.

Impact on Majors

  • The dovish Fed position suggests a potential shift in interest rates.
  • Market analysts believe the BoE might cut rates once before the year's end.
  • This scenario can lead to significant volatility among major currency pairs.

GBP/USD trading strategies may need reevaluation as macroeconomic indicators reshape market conditions.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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