GBP/USD Dives on Warsh's Hawkish Remarks, BoE Tightening Prospects Rise

The GBP/USD pair has seen declines to near 1.3545 in Tuesday's early European session, but maintains a bullish bias above the 100-day SMA.

Fed Chair Kevin Warsh's hawkish remarks at the Jackson Hole symposium have supported the US dollar against the British Pound, underpinning expectations of a September Fed rate hike to 65.4% from below 40%, according to the CME FedWatch tool.

Strategists at Scotiabank highlight that market pricing has turned more constructive on BoE tightening prospects, with investors assigning a ~60% chance of a 25bpt at the next BoE meeting on September 16 and a cumulative 36bpts of tightening by year-end.