British Pound softens as UK political turmoil, hawkish Fed bets weigh
The GBP/USD pair loses ground to near 1.3415 during the Asian trading hours on Tuesday. The British Pound (GBP) edges lower against the Greenback amid UK political turmoil. Traders will take more cues from the UK employment report, which is due later on Tuesday.
UK Prime Minister Keir Starmer is facing a major leadership crisis following poor local election results on May 7, triggering a wave of high-level government resignations and severe market volatility. UK gilt yields have spiked to a 28-year high amid fiscal worries, exerting some selling pressure on the Cable sentiment.
The International Monetary Fund (IMF) on Monday raised its growth forecast for the UK economy this year but warned that further "domestic uncertainty," at a time when political instability is engulfing the government, could hit spending and investment.
On the USD’s front, hotter-than-expected US inflation data have driven hawkish Federal Reserve rhetoric, lifting the US Dollar (USD). Traders in the fed funds futures market are pricing in a 35.0% chance that the US central bank will raise interest rates by 25 basis points (bps) by year-end, according to the CME FedWatch tool.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
XRP Beats Bitcoin in August With a 30% Monthly Gain

Fitness+ business streamlining, $1999 foldable screen and AI strategy take the lead! Apple (AAPL.US) is brewing a new round of strong growth
A more significant catalyst for future performance is the premium product structure upgrade driven by foldable screens, as well as a new wave of iPhone replacement demand prompted by Apple's exclusive AI experience that has been in the works for years.
Qualcomm (QCOM.US) Snapdragon Summit Preview: 2nm Dual-Chip Debuts, AI Diversification Narrative Faces Key Verification
Qualcomm is scheduled to hold its annual Snapdragon Summit in Maui, Hawaii, from September 22 to 24 local time.
SUI SuperTrend Flips to Buy — Macro Shift From Bearish to Bullish Begins

