Forex
GBP Surges Against USD as Traders Price Out Hawkish Fed Bets
The British Pound (GBP) has strengthened against the US Dollar (USD), reaching near 1.3533, as traders price out hawkish Fed bets following soft US CPI data for July.
The GBP/USD pair reflects strength as the US Dollar declines, with traders reassessing the possibility of an interest rate hike by the Federal Reserve (Fed) in September.
According to the CME FedWatch tool, the odds of the Fed holding policy rates steady in September have increased to almost 65%, a significant repricing from the 75% odds of two Fed hikes by the September meeting recorded a month earlier.