Pound Bounces on Hike Argument as August Inflation Print Looms

The British Pound recovered some of its losses on Thursday, with GBP/USD trading near 1.3530 after the 50-day Exponential Moving Average (EMA) held for a second consecutive session.

A speech by Bank of England chief economist, arguing that Bank Rate should rise promptly from 3.75% to 4%, contributed to the pound's rebound.

However, the majority view remains that there will be no interest rate hike, despite the dissenting opinion from the chief economist and a third consecutive meeting at which the hike camp lost, with a vote of 6-3 in July.

The dollar leg was borrowed, as a Fed governor's statement weighed on the greenback before a sharp bounce on the pound.

Friday will be crucial for the pound, with Governor Andrew Bailey speaking before the US nonfarm payrolls data, which could sway the decision on interest rates at the next meeting.