The British Pound gains 0.2% against the US Dollar as traders reduce Fed rate hike expectations following soft US economic data.
The GBP/USD pair climbed 0.2% to 1.3557 in European trading on Wednesday, driven by a weaker US Dollar. Investors scaled back Federal Reserve interest rate hike bets after disappointing US economic data for August weighed on the currency.
The US Dollar Index (DXY) showed broad weakness, with the Dollar falling most sharply against the Japanese Yen. Markets now await the release of the Federal Open Market Committee (FOMC) minutes from the July meeting at 18:00 GMT, though analysts expect limited hawkish surprises.
ING analysts noted the July FOMC meeting was dovish, with a 9-3 vote to hold rates steady. They anticipate the minutes may include some hawkish references but do not expect a significant shift in market sentiment.