Traders await US jobs data this week after Fed signals potential rate hike amid persistent inflation concerns.
The GBP/USD pair fell to around 1.3240 in Asian trading Tuesday, pressured by expectations of a US Federal Reserve rate hike. The Fed held rates steady in June but indicated a possible increase later this year due to inflation exceeding its 2% target.
Markets are pricing a 60% chance of a Fed hike by September, according to the CME FedWatch tool. Attention now shifts to US June employment data, with economists forecasting 110,000 new jobs and a steady 4.3% unemployment rate.
The US Dollar found support as traders await key economic releases, including ADP employment and Nonfarm Payrolls, for further clues on monetary policy.