British Pound edges higher vs weak USD as focus remains glued to this week's FOMC meeting
The GBP/USD pair attracts some dip-buyers near the 1.3360 area during the Asian session on Friday, stalling last week's modest pullback from its highest level since September 16.
The British Pound edged higher against the weak US Dollar this week, largely due to expectations of tighter monetary policy from the Bank of England. Traders await the Federal Reserve's decision on Wednesday, which is expected to keep interest rates unchanged. The upcoming US macro releases, such as the Advance Q3 GDP print and the Personal Consumption Expenditures (PCE) Price Index, will also impact the market's view of the Fed's future policy path.
Meanwhile, a softer US Dollar and stronger-than-expected UK inflation data support the British Pound's rally. The Pound Sterling, the oldest currency in the world, is the fourth most traded currency in FX markets, accounting for 12% of all transactions. Investors are pricing in a 25-basis-point BoE rate hike at the November 5 meeting, which could further boost the GBP/USD pair and keep up the recent rebound from a nearly four-month low.
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