GBP/USD Trapped in Recent Ranges Ahead of Key Interest Rate Decision

The pound to dollar exchange rate (GBP/USD) has remained steady near 1.35, as investors await further cues from the Federal Reserve on interest rates.

Attention is focused on Fed Chair Kevin Warsh, with some questioning whether the central bank's hawkish rhetoric will translate into tighter monetary policy.

UBS expects gains to 1.40 for GBP/USD, while ING forecasts a narrow range of 1.32-1.36.

MUFG noted that UK yields may fall if energy prices decline, and UK fiscal policy will be key once the Summer recess is over.