Will GBP/USD remain strong ahead of two central bank interest rate meetings?
GBP/USD continues to move on the charts at the upper end of a 40-month peak, circling the 1.3600 region as Cable traders enjoy a sustained boost. Dollar flows continue to weaken across the board on geopolitical headlines, keeping the Pound Sterling buoyed as calls for dual central bank interest rates loom.
The Israel-Iran conflict continues to escalate, with both sides launching missile strikes on multiple targets and the Trump administration mulling the concept of getting directly involved in the dispute. Broad market investor sentiment is banking on both sides reaching some sort of peace agreement before the dispute spills over into the surrounding region.
The Federal Reserve (Fed) and the Bank of England (BoE) will both release their latest interest rate decisions; both central banks are expected to leave rates unchanged, but the reactions from their respective government officials are expected to differ widely.
US President Donald Trump has been increasingly vocal about his desire for the Fed to start lowering interest rates, even as Fed policymakers maintain a “wait and see” stance as officials brace for the economic fallout from Trump’s erratic tariff “strategy.” The BoE is also expected to keep interest rates steady at 4.25%, but no significant change in policy stance, or complaints about it, is expected. The Fed releases its latest rate call on Wednesday, with the BoE due on Thursday morning.
Source: FXStreet
