GBP/USD Firms Up After Central Banks' Double-Header
The GBP/USD pair has stabilized in recent days following interest rate decisions from both the Federal Reserve and the Bank of England. The pair is currently trading at 1.3395, up slightly from its low this month of 1.3336.
The Fed hiked interest rates by 0.25% to between 3.75% and 4%, citing elevated inflation above the 2% target. Analysts now expect another rate hike before the end of the year, with most predicting it will occur in December.
Meanwhile, the Bank of England left interest rates unchanged, but analysts believe it will raise them at its next meeting due to inflation exceeding the target level of 2%. The UK's inflation rate rose 3.1% in August, and another report showed a strong jobs market despite rising prices.
The GBP/USD pair is expected to react to upcoming macroeconomic data from both the US and the UK, including flash manufacturing and services PMI numbers.