Pound Sterling falls further against US Dollar, Fed Powell’s speech in focus
- The Pound Sterling weakens further against the US Dollar as the Greenback rebounds after a mild corrective move.
- The FOMC Minutes signaled that officials see more interest rate cuts amid growing labor market concerns.
- The UK administration stops cabinet from using emergency funds to support pay raises.
.The Pound Sterling (GBP) extends its losing streak for the third trading day against the US Dollar (USD) on Thursday. The GBP/USD pair slides to near 1.3365 as the US Dollar Index (DXY) rebounds after a slight corrective move.
In the European session, the DXY, which tracks the Greenback’s value against six major currencies, bounces back to near the two-month high of 99.00 after correcting to near 98.70.
Three-week-long rally in the US Dollar faced slight selling pressure after the release of the Federal Open Market Committee (FOMC) minutes on Thursday of the September policy meeting, which stated that officials were confident about adjusting interest rates on the downside amid growing labour market risks. On inflation, policymakers expressed relief, stating that upside risks to price pressures have either diminished or not increased.
The FOMC Minutes also showed that officials judged it would likely be “appropriate to ease policy further over the remainder of 2025”. According to the CME FedWatch tool, traders also see a 78.6% chance that the Fed will cut interest rates by 25 basis points (bps) in each of its two remaining policy meetings this year.
For more cues on the monetary policy outlook, investors await the speech from Fed Chair Jerome Powell at the Community Bank Conference in Washington, scheduled for 12:30 GMT. Investors would like to know the overall impact of the ongoing US government shutdown on the economic and monetary policy outlook.
- The Pound Sterling weakens further against the US Dollar as the Greenback rebounds after a mild corrective move.
- The FOMC Minutes signaled that officials see more interest rate cuts amid growing labor market concerns.
- The UK administration stops cabinet from using emergency funds to support pay raises.
.The Pound Sterling (GBP) extends its losing streak for the third trading day against the US Dollar (USD) on Thursday. The GBP/USD pair slides to near 1.3365 as the US Dollar Index (DXY) rebounds after a slight corrective move.
In the European session, the DXY, which tracks the Greenback’s value against six major currencies, bounces back to near the two-month high of 99.00 after correcting to near 98.70.
Three-week-long rally in the US Dollar faced slight selling pressure after the release of the Federal Open Market Committee (FOMC) minutes on Thursday of the September policy meeting, which stated that officials were confident about adjusting interest rates on the downside amid growing labour market risks. On inflation, policymakers expressed relief, stating that upside risks to price pressures have either diminished or not increased.
The FOMC Minutes also showed that officials judged it would likely be “appropriate to ease policy further over the remainder of 2025”. According to the CME FedWatch tool, traders also see a 78.6% chance that the Fed will cut interest rates by 25 basis points (bps) in each of its two remaining policy meetings this year.
For more cues on the monetary policy outlook, investors await the speech from Fed Chair Jerome Powell at the Community Bank Conference in Washington, scheduled for 12:30 GMT. Investors would like to know the overall impact of the ongoing US government shutdown on the economic and monetary policy outlook.
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