GBP Holds Gains vs USD Amid Reduced Rate Hike Expectations

The British Pound has held onto its two-day gains against the US Dollar at around 1.3500 in the Asian trading session on Tuesday.

Despite financial markets pricing out a possible interest rate hike by the Bank of England, strategists at Rabobank note that 'for the UK, the market is currently pricing in a reduced expectation of a rate hike by the end of the year.'

The key trigger for the British currency this week will be the preliminary United Kingdom Q2 and June month Gross Domestic Product (GDP) data, which will be released on Thursday.

Meanwhile, the US Dollar Index trades almost flat at press time, holding onto Monday's recovery move at around 99.80.