Sterling Struggles Near Two-Month Low Amid Fed Hike Bets

The British pound is struggling to recover from its recent lows against the US dollar, stuck near the two-month low of 1.3200 as it hovers above this key level.

Firm expectations for another Federal Reserve rate hike and elevated U.S. yields continue to support the greenback, limiting sterling's potential recoveries.

Traders are eagerly awaiting the release of US data on PCE Price Index and final Q2 GDP figures, which will shape expectations for Fed policy and influence dollar dynamics.