Forex
GBP/USD Edges Higher on Softening US Inflation Expectations
The British Pound is edging higher against the US Dollar in early Asian trade on Tuesday, with GBP/USD moving up toward the 1.3550 area.
The US Dollar is losing ground to Sterling as recent signs of cooler US inflation have led investors to scale back expectations for imminent tightening by the Federal Reserve.
Market attention is now turning to upcoming UK labor market figures later in the day, with strategists at Scotiabank describing a measured tone in the market ahead of a wave of UK indicators.
The Bank of England's Chief Economist Huw Pill stated last week that stronger-than-expected UK economic growth figures have strengthened the argument for higher borrowing costs in order to bring inflation back to the central bank's target.