Pound Rises as Dollar Remains Soft Ahead of Key Economic Indicators
The British pound (GBP) rose against the US dollar on Monday as traders await key economic indicators, including this week's US inflation data and a scheduled interest rate decision from the European Central Bank.
GBP/USD gained 0.14% to reach 1.3535, while EUR/USD added 0.07% to trade at 1.1622 as of 05:10 ET (09:10 GMT), according to Investing.com data.
ING's Global Head of Markets and Regional Head of Research for UK & CEE, Chris Turner, pointed out that the dollar should be stronger due to high energy prices and a strong jobs market, but remains soft likely due to the still-constructive investment environment.
Turner expects US inflation data on Friday to nudge the Federal Reserve towards a 25-basis-point rate cut at its September 16 meeting, a move currently priced at just 58% probability.