Pound Reaches Three-Month High Amid Fed Rate Hike Uncertainty
The British Pound has reached three-month highs at 1.3570 due to broad-based US Dollar weakness, according to data from the CME Group's FedWatch Tool. Investors have been reassessing their expectations for a September interest rate hike by the Federal Reserve following recent economic releases in the US.
Last week's retail sales figures showed a 0.6% drop against market forecasts of a 0.1% gain, while producer and consumer price data revealed moderating inflationary pressures. The Nonfarm Payrolls report also indicated that US jobs fell unexpectedly in July.
In the UK, GDP data from last week confirmed moderate growth in Q2, but July's Industrial Production fell unexpectedly, leaving uncertainty surrounding the Bank of England's monetary policy plans.