GBP/USD Stalls as Mixed US Data Keeps Hawkish Bets Alive

The British Pound (GBP) traded sideways versus the US Dollar on Tuesday as mixed US economic data kept Federal Reserve hawkish bets alive.

A tranche of US economic data released on August was mixed, with business activity dipping in the month while a strong jobs market justified Fed Chair Kevin Warsh's hawkish tilt. This development underpinned the US dollar against the British Pound.

The GBP/USD pair traded at 1.3540, down a modest 0.06% during the early European trading hours on Tuesday. The Federal Reserve's hawkish stance suggests that interest rates may be increased in the future, which can strengthen the US dollar and put downward pressure on sterling.