Investors reduce expectations for a September Federal Reserve rate increase, lifting the British Pound against the US Dollar.
The British Pound held steady near 1.3350 against the US Dollar on Friday, capping a weekly gain of over 1% as doubts grow over a Federal Reserve interest rate hike in September. Markets have scaled back bets on further tightening after recent economic data suggested cooling inflation pressures.
Prior to this week, the GBP/USD pair had struggled to sustain momentum above 1.3300, with traders balancing Bank of England policy expectations against Fed signals. The shift in sentiment follows softer-than-expected US jobs and inflation reports, reinforcing expectations that the Fed may pause its rate-hiking cycle.
The currency pair showed limited intraday volatility but remained on track for its strongest weekly performance in a month.