The GBP/USD pair gains ground around 1.3605 during the Asian trading hours on Thursday. The Greenback softens against the Pound Sterling amid the prospects for more interest rate cuts by the Federal Reserve (Fed) this year.
Traders await the US weekly Initial Jobless Claims data later on Thursday. Also, the Federal Reserve (Fed) officials are scheduled to speak, including Alberto Musalem, Christopher Waller and Mary Daly.
US President Donald Trump on Monday warned trading partners of sharply higher US tariffs from August 1, after he delayed all but 10% of his April levies on most countries to give them time to strike agreements with the US.
US Deputy Treasury Secretary Michael Faulkender remarked on Wednesday that even if tariffs were implemented, discussions may continue beyond the August deadline. Nonetheless, tariff uncertainty triggered by Trump could undermine the US Dollar (USD) and create a tailwind for the major pair.
Most participants at the Fed's meeting saw some reduction in the Fed funds rate this year as appropriate, citing that any price shock from tariffs was expected to be "temporary or modest," according to the FOMC Minutes.
After the FOMC Minutes were published, traders pared their bets on a rate cut at the Fed's July 29-30 meeting, with rate futures continuing to point to 50 basis points (bps) of cuts by the end of this year, according to Reuters.
Source: FXStreet
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