GBP/USD holds steady above 1.3100 ahead of Fed Beige Book

Mitrade
Trending Articles
coverImg
Source: DepositPhotos
  • GBP/USD trades steady around 1.3110 in Wednesday’s early European session.

  • US ISM Manufacturing PMI was weaker-than-expected in August.

  • Investors expect the BoE to leave interest rates unchanged in September.   


The GBP/USD pair flat lines near 1.3110 during the early European session on Wednesday. However, the risk-off sentiment ahead of the key US events could provide some support to the US Dollar (USD) and drag the major pair lower. The US JOLTS Job Openings and Fed Beige Book are due later on Wednesday.

Data released by the Institute for Supply Management (ISM) on Tuesday revealed that the Manufacturing PMI rose slightly to 47.2 in August from 46.8 in July. This figure came in below the market consensus of 47.5. 

According to the CME FedWatch tool, which acts as a barometer for the market's expectation of the Fed funds target rate, the chance of the Federal Reserve (Fed) cutting rates by 25 basis points (bps) at the September meeting is 61%, while the odds of the Fed cutting rates by 50 bps are 39%. 

The Fed Chair Jerome Powell said last month that the "time has come" for monetary policy to adjust, signaling that the US central bank will likely start easing monetary policy at its upcoming meeting scheduled for September 17-18. The firmer Fed rate cut bets might weigh on the USD in the near term. 

The US August employment data will be in the spotlight on Friday. Deutsche Bank economists suggested that a rise in Unemployment Rate could reinforce market expectations for a 50 bps rate cut by the Fed. 

On the other hand, the cautious mood continues to underpin the Greenback for the time being, although the Bank of England (BoE) is expected to follow a shallow interest rate cut cycle this year compared to its peer central bankers. GBP/USD will likely be influenced by USD price dynamics, given there are no top-tier economic data releases from the UK.

Read more

  • June Non-Farm Payrolls Preview: Did White House Economic Advisor Give an Early Hint? How Will US Stocks, Dollar and Gold React?
  • * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

    goTop
    quote
    Related Articles
    placeholder
    Japanese Yen sinks to fresh low since 1986 vs USD amid persistently wide US-Japan rate gapThe USD/JPY pair builds on the previous day's breakout momentum and continues to scale new multi-decade highs through the Asian session on Wednesday.
    Author  FXStreet
    Yesterday 01: 47
    The USD/JPY pair builds on the previous day's breakout momentum and continues to scale new multi-decade highs through the Asian session on Wednesday.
    placeholder
    Japan’s Kihara: Always ready to take necessary action on forexJapan’s Chief Cabinet Secretary Minoru Kihara reiterated during a regularly scheduled press conference this Tuesday that officials he is always ready to take necessary action on forex. Kihara, however, refrained from commenting on specific forex level.
    Author  FXStreet
    Jun 30, Tue
    Japan’s Chief Cabinet Secretary Minoru Kihara reiterated during a regularly scheduled press conference this Tuesday that officials he is always ready to take necessary action on forex. Kihara, however, refrained from commenting on specific forex level.
    placeholder
    Australian Dollar edges lower to near 0.6900 on Fed hike bets The AUD/USD pair edges lower to around 0.6900 during the Asian trading hours on Friday. The US Dollar (USD) strengthens against the Australian Dollar (AUD) on the expectation of US rate hikes later this year.
    Author  FXStreet
    Jun 26, Fri
    The AUD/USD pair edges lower to around 0.6900 during the Asian trading hours on Friday. The US Dollar (USD) strengthens against the Australian Dollar (AUD) on the expectation of US rate hikes later this year.
    placeholder
    Japanese Yen flatlines near 161.50 as traders are on high alert for interventionThe USD/JPY pair holds steady near 161.55 during the early Asian session on Tuesday. Progress in US–Iran peace talks and intervention fears from the Japanese authorities might cap the upside for the pair.
    Author  FXStreet
    Jun 23, Tue
    The USD/JPY pair holds steady near 161.55 during the early Asian session on Tuesday. Progress in US–Iran peace talks and intervention fears from the Japanese authorities might cap the upside for the pair.
    placeholder
    Japanese Yen hangs near intervention zone despite BoJ rate hike, ahead of FOMCThe USD/JPY pair ticks lower during the Asian session on Wednesday, though it remains within striking distance of the highest level since late April, touched last week.
    Author  FXStreet
    Jun 17, Wed
    The USD/JPY pair ticks lower during the Asian session on Wednesday, though it remains within striking distance of the highest level since late April, touched last week.
    Live Quotes
    Name / SymbolChart% Change / Price
    GBPUSD
    GBPUSD
    0.00%0.00
    USDOLLAR-F
    USDOLLAR-F
    0.00%0.00

    Forex Related Articles

    • How to Identify Forex Scams? Warning Signs Every Trader Should Know
    • Stop Loss: Your Savior In The Market
    • Is Mitrade a Legit Broker? A Transparent Review of Security, Platform, and Trading Conditions (2026 Updated)
    • Is Mitrade Right for You? A Complete Guide on How to Start Trading CFDs in 5 Steps
    • 6 Leading ASIC-Regulated Forex Trading Platforms&Apps in Australia (2026 Update)
    • Forex Trading In Malaysia - Top 10 Forex Brokers for Malaysia: Regulated & Trader-Friendly Picks

    Click to view more