GBP/USD Holds Near 1.3300 Ahead of Fed Policy Announcement

The GBP/USD pair edged up to near 1.3300 as the US Dollar traded subdued ahead of the Federal Reserve's policy announcement.

Both the Fed and the European Central Bank are expected to leave interest rates unchanged, but investors will be watching closely for any signs of a rate hike or cut.

The CME FedWatch tool shows that the odds of the Fed leaving interest rates unchanged in the range of 3.50%-3.75% are 69.5%, with traders not aggressively confident that the central bank will leave rates steady again.

Financial markets will also focus on the monetary policy statement and Fed Chair Kevin Warsh's press conference to get fresh cues regarding inflation and the economic outlook in the wake of ongoing military aggression in the Middle East.