GBP Edges Lower Amid Fed Uncertainty and Steady USD

The British Pound (GBP) edged lower against the US Dollar (USD) in Asian dealings on Tuesday, trading around 1.3290 after opening with a bullish gap.

The pair came under pressure as the USD steadied amid investor caution ahead of the Federal Reserve's policy announcement scheduled for Wednesday.

Data from the CME FedWatch Tool shows that markets are assigning nearly a 38% probability to a rate increase in July, reflecting an unusually elevated level of uncertainty so close to the meeting.

Citadel Securities expects the Fed to proceed with a rate hike to reinforce Chairman Kevin Warsh's anti-inflation credentials, following his repeated commitments to restore price stability.