Forex
Pound Strengthens to Near 1.3550 as Fed Hike Bets Fade
The British Pound (GBP) has gained strength against the US Dollar (USD), reaching levels near 1.3550 in Tuesday's early Asian session.
This comes as expectations of a US Federal Reserve (Fed) rate hike have tempered, with traders now pricing in just a 35% probability of a September increase and a 69% odds of a rate increase by December.
The UK jobs data will be closely watched later on Tuesday, which could provide some hints about the Bank of England's interest rate path. Better-than-expected outcomes could lift the GBP against the USD in the near term.