GBP Surges as Fed Rate Hike Bets Fizzle Out

The British Pound (GBP) has reached a three-month high against the US Dollar (USD), bolstered by dwindling expectations of further Federal Reserve interest rate hikes.

This shift in market sentiment comes as investors increasingly price out additional Fed rate increases, driven by softer inflation readings and a cooling labor market.

As a result, traders are trimming long-dollar positions, contributing to the dollar's overall weakness.