GBP/USD climbs to 1.3300 as traders weigh a 30.5% chance of an immediate Fed rate hike amid geopolitical risks.
The British Pound advanced against the US Dollar, trading near 1.3300 in Asian hours as the Greenback weakened ahead of the Federal Reserve’s policy decision. Markets are pricing a 30.5% probability of an immediate rate hike, reflecting heightened uncertainty.
Expectations for a September rate increase stand at 76.6%, reinforcing projections of prolonged elevated borrowing costs. Meanwhile, the Bank of England is anticipated to hold rates at 3.75% later this week, supported by June’s 2.6% inflation print, the lowest in 15 months.
Geopolitical tensions in the Middle East may provide temporary support for the Dollar, as investors assess inflationary risks and the broader US interest rate outlook.