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Pound Strengthens as Fed Chairman Powell Surprisingly Dovish on Interest Rates
Monday, 25 August 2025 15:46 WIB | GBP/USD |GBP/USD

The British pound (GBP) maintained its gains on Friday near 1.3530 against the US dollar (USD) during the European trading session on Monday (August 25th). The GBP/USD pair traded strongly as comments from Federal Reserve Chairman Jerome Powell, during his speech at the Jackson Hole Symposium on Friday, signaled that he had taken a dovish stance on the interest rate outlook.

Investors had anticipated that Powell would reiterate his "wait-and-see" approach to interest rates. However, this surprisingly dovish tone has significantly increased investor risk appetite.

However, the US dollar and US Treasury bond yields are under pressure. At the time of writing, the US Dollar Index (DXY), which tracks the greenback against six major currencies, was struggling to strengthen near a nearly four-week low around 97.60. Meanwhile, the 10-year US Treasury yield traded near Friday's low of around 4.27%.

Meanwhile, investors braced for a less volatile trading day for the pound as UK markets were closed on Monday for the Summer Bank Holiday. (alg)

Source: FXstreet

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