GBP Traders Await Fed Signals Amid Muted USD Demand

The British Pound (GBP) has been trading near its weekly lows against the US Dollar (USD), with the GBP/USD pair hovering just below the 1.3600 level during the Asian session on Thursday.

This comes as market participants await additional guidance from the US Federal Reserve on their interest rate trajectory, which is expected to influence the USD's performance.

The recent release of US inflation data showed that the Personal Consumption Expenditures (PCE) Price Index rose 3.7% over the 12 months through July, slightly above market expectations and reinforcing the case for at least one additional Federal Reserve rate increase by year-end.

However, muted US bond yields and optimism around a potential US-Iran agreement on the Strait of Hormuz are tempering broader safe-haven demand for the Dollar.