Pound Retreats from One-Week High as USD Buying Interest Persists

The British Pound (GBP) has retreated from its one-week high of 1.3300 against the US Dollar (USD), trading just above the mid-1.3200s during the Asian session on Thursday.

This move is attributed to a mixed fundamental backdrop, with the GBP potentially drawing support from an upward revision of UK Q2 GDP growth to 0.4%, reaffirming bets for a 25-basis-point (bps) rate hike by the Bank of England (BoE) at its upcoming meeting on November 5.

However, the US PCE data released on Wednesday tempered expectations for an October Federal Reserve (Fed) rate hike, which acts as a tailwind for the GBP/USD pair. Nonetheless, prevailing USD buying interest caps the upside.