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

  • AI Boom Lifts US Stocks, Strategist Sees S&P Breaking 10,000 in Three Years, How Much Longer Can This Rally Last?
  • When Will the Gold Dilemma Be Resolved? Breakdown of US-Iran Negotiations Puts Gold Prices Under Pressure Again, Can It Return to $5,000?
  • * 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
    US President Donald Trump says trade will be priority in summit with Xi, not IranUS President Donald Trump said that he would prioritize trade discussions during his summit with Chinese President Xi Jinping and downplayed the amount of attention they would devote to the Iran war, Bloomberg reported on Tuesday.
    Author  FXStreet
    15 hours ago
    US President Donald Trump said that he would prioritize trade discussions during his summit with Chinese President Xi Jinping and downplayed the amount of attention they would devote to the Iran war, Bloomberg reported on Tuesday.
    placeholder
    April NFP Lands at 8:30 AM Today — 65K Forecast, a New Fed Chair, and the Dollar at Triple-Bottom SupportApril 2026 NFP forecast 62K–70K vs March 178K. Unemployment expected 4.3%. Fed on hold at 3.50–3.75% with Kevin Warsh as new chair. DXY triple-bottom at $97.69. Trade setup inside.The Apr
    Author  TradingKey
    May 08, Fri
    April 2026 NFP forecast 62K–70K vs March 178K. Unemployment expected 4.3%. Fed on hold at 3.50–3.75% with Kevin Warsh as new chair. DXY triple-bottom at $97.69. Trade setup inside.The Apr
    placeholder
    Australian Dollar holds losses ahead of RBA policy decisionAUD/USD extends its losses for the second successive day, trading around 0.7160 during the Asian hours on Tuesday. Traders expect the Reserve Bank of Australia (RBA) to deliver an interest rate hike later in the day.
    Author  FXStreet
    May 05, Tue
    AUD/USD extends its losses for the second successive day, trading around 0.7160 during the Asian hours on Tuesday. Traders expect the Reserve Bank of Australia (RBA) to deliver an interest rate hike later in the day.
    placeholder
    Forex Today: Japanese Yen rallies on reported intervention, US-Iran tensions remain highHere is what you need to know on Friday, May 1:
    Author  FXStreet
    May 01, Fri
    Here is what you need to know on Friday, May 1:
    placeholder
    Japanese Yen extends the range play against USD; looks to BoJ for fresh impetusThe USD/JPY pair is seen consolidating in a narrow band around mid-159.00s during the Asian session on Tuesday as traders opt to wait for the crucial Bank of Japan (BoJ) before placing fresh directional bets.
    Author  FXStreet
    Apr 28, Tue
    The USD/JPY pair is seen consolidating in a narrow band around mid-159.00s during the Asian session on Tuesday as traders opt to wait for the crucial Bank of Japan (BoJ) before placing fresh directional bets.
    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