Fed and BoE Rate Decisions Set for Volatile GBP/USD Week

The Pound-Dollar exchange rate may see significant movement this week due to two major events: the Federal Reserve's interest rate decision and the Bank of England's (BoE) own interest rate decision.

Last week, the GBP/USD exchange rate was mixed amid an uneven market mood. However, it ended the week broadly higher after a sharp appreciation in the Japanese yen and robust inflation figures that reinforced bets for an impending Federal Reserve hike.

This week's focus is on the Fed's interest rate decision, which is expected to be hawkish. The bank may hint at further tightening in the coming months, potentially lifting the US Dollar against the Pound.