GBP/USD Volatility Ahead: Fed Symposium and Payroll Revisions Loom
The Pound to US Dollar exchange rate reached a six-month high last week due to concerns over US debt, but its trajectory in the coming week is uncertain.
The GBP/USD rate rose by around 0.9% from the start of last week's session and was trading at $1.3661 at the time of writing.
This surge in value was largely driven by market anxiety over the US fiscal outlook, with the national debt reaching a new record high of $40tn.
The Treasury's decision to expand its bond buyback programme also added to concerns about the Greenback's stability.
However, the Pound's performance against other currencies was more volatile due to mixed economic data from the UK.
While the Bank of England's monetary policy outlook remains uncertain, the focus for the coming week will be on the Federal Reserve's Jackson Hole symposium and the US Bureau of Labor Statistics' annual revision to non-farm payrolls.