GBP/USD rises slightly as US dollar softens, but buyers remain cautious
The GBP/USD pair moved higher on July 31, recovering slightly after hitting its lowest level since mid-May. The pair climbed above the 1.3200 mark in early Asian trading, helped by a weaker US dollar.
The US dollar dipped after Federal Reserve Chair Jerome Powell repeated that the central bank is not planning to cut interest rates in the next meeting. His comments kept investors cautious but stopped the dollar from gaining much strength. This gave a little push to the British pound.
However, even with this recovery, traders are not very confident. There’s still uncertainty in the market, and buyers are waiting for stronger signals before making big moves. The GBP/USD forecast remains unclear in the short term.
Adding to this cautious tone, the Bank of England is expected to cut interest rates in August. This possible rate cut is making investors careful and may hold back the pound from rising too much.
All eyes are now on upcoming US PCE inflation data and other economic reports. These numbers will play a key role in deciding the next move for GBP/USD, especially regarding the Fed’s policy outlook.
Impact:
GBP/USD might rise more if US inflation comes in soft. But gains could slow down if Fed stays hawkish or Bank of England confirms a rate cut.