GBP/USD Exchange Rate Trades Around 1.3547 as Fed Hike Debate Intensifies
The Pound to Dollar exchange rate traded around 1.3547 on Monday after last week's dollar rebound knocked sterling back from six-month highs.
Friday's US employment report will determine whether this correction extends, with markets looking for a non-farm payroll increase of 55,000, unemployment remaining at 4.1%, and hourly earnings rising 0.3%.
Barclays switched its forecast to two further Fed hikes this year after Federal Reserve Chair Kevin Warsh used his Jackson Hole speech to underline continued concern over underlying inflation.
However, there remains disagreement over whether the Fed will actually deliver, with ING's Francesco Pesole saying 'we remain reasonably confident in our call for the Fed to hold on 16 September and, by extension, in a weaker dollar.'