Pound Rises as Fed Rate Hike Bets Cool, UK Jobs Data Looms

The British pound has been steadily rising against the US dollar, reaching levels near 1.3550 due to waning expectations of further Federal Reserve rate hikes.

This shift in market sentiment has led to a weakening of the dollar, which is supporting sterling's growth. The Bank of England has maintained a relatively hawkish stance, with policymakers signaling that interest rates may need to stay elevated to curb inflation.

The upcoming UK jobs data will be crucial for determining the pound's near-term direction. A strong report could extend the rally, while weaker numbers might trigger a pullback. Technical analysts note that GBP/USD faces resistance around 1.3550, with the next major level at 1.3600.