Forex
GBP/USD Strengthens as US Dollar Weakness Continues
The GBP/USD currency pair is trading at around 1.3610 on Thursday morning in Europe, following a weakening US dollar due to dwindling expectations of a Federal Reserve rate hike and Treasury bond buybacks.
The latest CME FedWatch Tool shows that the probability of a US interest rate increase in September has dropped to 32.7%, down from 47% last month.
The Bank of England is likely to be reassured by the lack of surprises in Wednesday's UK Consumer Price Index inflation data, and figures showing a slightly cooler labour market may limit the lasting impact of inflation caused by the Iran war.