British Pound bounces off over one-week low vs soft USD; upside potential seems limited
The GBP/USD pair edges higher at the start of a new week, reversing a part of Friday's heavy losses to over a one-week trough.
The British Pound (GBP) retraced against the US Dollar (USD) over a one-week low on Friday, recovering slightly as the session opened on Monday. Traders caution that the recent decline from the highest level since February may not be over yet. The greenback paused after a strong move up to a nearly two-week high, as the US Dollar often benefits from month-end rebalancing.
UK Chancellor John Healey emphasized maintaining fiscal discipline, while traders have pushed back expectations for the next Bank of England rate hike into 2027. US Federal Reserve Chair Kevin Warsh's hawkish comments from the Jackson Hole Symposium boosted expectations for a September rate hike, potentially limiting losses for the USD.
Geopolitical tensions between the US and Iran also favor USD bulls. This week, the focus will be on US macro releases, including the Nonfarm Payrolls (NFP) report on Friday.
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