Pound Edges Higher vs Dollar Amid Hawkish Fed Sentiment

The British Pound (GBP) has edged higher against the US Dollar (USD), trading around 1.3500 after two sessions of declines, thanks to broad US Dollar weakness.

The Pound's gain is limited by Middle East tensions, energy market shocks, and UK fiscal concerns, which are weighing on investor sentiment. Despite expectations for a 25-basis-point Bank of England hike by year-end, the Sterling's upside remains constrained.

The recent US Labor Data showed weaker-than-expected private-sector employment figures, with an increase of only 38,000 jobs in August, undershooting forecasts of 47,000. This has added pressure on the Dollar, which is already under scrutiny from hawkish Federal Reserve communications.