GBP/USD Teeters Near 1.3300 Ahead of Crucial Fed and BoE Decisions

The British Pound (GBP) is trading cautiously near 1.3300 against the US Dollar (USD) ahead of two key monetary policy announcements this week.

Investors are bracing for the Federal Reserve's (Fed) decision on Wednesday, with expectations that interest rates will remain unchanged in the range of 3.50%-3.75%. However, US President Donald Trump has sparked uncertainty by suggesting that Fed Chairman Kevin Warsh should lower interest rates.

The CME FedWatch tool indicates a hawkish sentiment among traders, with an 80.8% chance of an interest rate hike in September.

In contrast, the Bank of England (BoE) is expected to keep interest rates steady at 3.75% on Thursday, based on a 7-2 majority forecast.