GBP/USD Pauses Near 1.3490 Amid Subdued Momentum and Hawkish Remarks
The GBP/USD pair continued its upward trend in the early European session on Thursday, reaching near 1.3490 as it maintained a mildly bullish bias despite subdued RSI momentum.
This came after Federal Reserve Chair Kevin Warsh's hawkish remarks at the Jackson Hole meeting last week, which boosted market expectations for a rate hike next month and reinforced the elevated risks of policy tightening this year.
UOB analysts noted that Warsh's emphasis on inflation risks and his commitment to achieving price stability could lead to rates rising further, although it may also be a case of talking without action.
In related news, Bank of England policymaker Catherine Mann said the UK economy had shown signs of stronger growth since the last monetary policy meeting, with stabilised labour markets and slightly higher inflation.