Pound Sterling Firms on Fed Caution as Dollar Gains Ground

The British Pound has been trading in a narrow range below the mid-1.3600s against the US Dollar on Tuesday, as the greenback firmed up due to growing expectations that the Federal Reserve will keep interest rates higher for longer.

This move is supported by resilient US economic data and cautious comments from Fed officials, making the dollar more attractive to investors.

For the British Pound, its near-term outlook remains tied to the Bank of England's policy path, with UK inflation cooling and markets anticipating possible rate cuts later this year, which could weigh on Sterling.

Despite these headwinds, the Pound has managed to hold its ground above the 1.3600 level, suggesting that sellers are not yet aggressive.