Pound Rebounds, But Fed Hikes and Strong Economy Keep Pressure On
The British Pound (GBP) has partially recovered from its early losses against the US Dollar (USD), but remains down by 0.14% at around 1.3235 during the European trading session on Tuesday.
The GBP/USD pair's slight gains come as the US Dollar Index (DXY) retreats after reaching a two-month high of 101.50, dropping to near 101.35.
Analysts at MUFG/BTMU highlight that the Federal Reserve (Fed) is likely to deliver more interest rate hikes this year, reinforcing support for the US Dollar from the positive terms of trade shock for the US economy due to higher energy prices.
The focus today will be on the US JOLTS Job Openings data for August, expected to show 7.23 million fresh jobs posted by US employers, marginally lower than July's 7.271 million.