GBP Consolidates Near Three-Week Low Amid Fed Bets and Iran Tensions
The British Pound (GBP) has consolidated near its three-week low against the US Dollar (USD), trading below the psychological mark of 1.3500 during the Asian session on Thursday.
This comes as the USD stabilizes following a previous day's corrective fall, amid Federal Reserve rate hike expectations and geopolitical uncertainties stemming from tensions between the US and Iran.
Traders have ramped up their bets that the Fed will raise borrowing costs this month, with inflation risks from higher energy prices supporting the case for policy tightening. This in turn offers some support to the USD, acting as a headwind for the GBP/USD pair.