The pair extends an eight-day rally to 1.3350, shrugging off hawkish Fed signals and soft US data as rate hike bets fade.
GBP/USD rose for an eighth straight session, reaching 1.3350 and testing its 200-day Exponential Moving Average. The move came despite hawkish Fed commentary and stronger-than-expected US services data, signaling a broader Dollar pullback rather than fresh Sterling strength.
The Dollar’s late-June surge, driven by hawkish Fed rhetoric, has unwound after June Nonfarm Payrolls missed expectations at 57K versus forecasts above 100K. Rate markets now price a roughly 75% chance of a July hold, cooling hike speculation. Sterling’s rebound began amid political uncertainty but gained momentum as the Dollar’s premium eroded.
Westminster’s stability contributed modestly, with the pair bottoming near 1.3150 after the Prime Minister’s resignation before recovering as leadership transition risks eased.