GBP Drifts Lower as Fed Hike Bets Rise and Jobs Data Loom
The British Pound (GBP) has lost momentum against the US Dollar (USD), trading at around 1.3490 during Asian hours on Tuesday.
The expectation of a Federal Reserve (Fed) interest rate hike on Wednesday is supporting the USD, while the UK's jobs report due today and the Bank of England's (BoE) decision on Thursday will also influence the GBP/USD pair.
A recent US inflation report showed core Consumer Price Index (CPI) rose 0.3% in August, making traders more confident that the Fed will raise interest rates to combat sticky inflation. The CME FedWatch Tool now prices in a 92.4% chance of a rate hike at the central bank's September policy meeting.
However, any dovish remarks from policymakers during the press conference on Wednesday could drag the USD lower and support the GBP/USD pair.