British Pound retreats further from one-week top as USD buying remains unabated
The GBP/USD pair edges lower during the Asian session on Thursday, retreating further from levels beyond the 1.3300 mark, or a one-week high, touched the previous day.
The British Pound (GBP) slipped further from its one-week high on Thursday, falling below the 1.3300 level in the Asian trading session. Currently trading just above mid-1.3200s, traders are cautious due to mixed fundamentals, though an upward revision of UK Q2 GDP growth to 0.4% supports the GBP. US PCE data released earlier in the week dampened expectations for a Fed rate hike, aiding GBP/USD.
However, persistent US Dollar buying interest restricts upside potential. The FedWatch Tool indicates an 87% probability of a rate hike by year-end. Inflation fears tied to oil prices and geopolitical tensions also bolster the USD, keeping the GBP/USD pair in a bearish near-term stance. The Pound Sterling, the world's oldest currency, is the fourth most traded currency in foreign exchange markets, accounting for 12% of daily transactions.
Its value is primarily influenced by the Bank of England's monetary policy decisions aimed at maintaining price stability around a 2% inflation rate.
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