Investors await the Fed’s Wednesday rate decision and the BoE’s Thursday announcement, weighing on GBP/USD near 1.3300.
The British Pound trades cautiously at 1.3300 against the US Dollar, reflecting investor caution ahead of key central bank meetings. The Fed is expected to hold rates at 3.50%-3.75% but signal potential inflation risks, while the BoE is likely to keep rates steady at 3.75% on Thursday.
Markets are pricing an 80.8% chance of a Fed rate hike in September, according to the CME FedWatch tool. Technical indicators show GBP/USD holding a bearish bias, with the pair below its 20-period EMA and a descending resistance trend line.
Traders remain on edge as political comments, including remarks from US President Donald Trump on rate cuts, add to uncertainty. The pair’s near-term direction hinges on central bank guidance and inflation expectations.