The Federal Reserve's decision to delay an interest rate cut has bolstered the US dollar, while simultaneously exerting selling pressure on the GBP/USD pair. As traders eagerly await the release of the US Nonfarm Payrolls (NFP) report on Friday, the GBP/USD remains subdued, trading around 1.2300 during the Asian session. The Fed's hawkish stance is proving to be a significant factor in capping gains for the pair.
The delay in the interest rate cut has led to elevated US bond yields, further strengthening the Greenback. On Thursday, the GBP/USD pair dropped to 1.2238, marking its lowest level since November 2023. Meanwhile, the EUR/USD pair is experiencing a mild negative bias, trading around 1.0300 during Friday's Asian trading hours.
Concerns about the UK's fiscal and inflation outlook continue to weigh heavily on the Pound Sterling. This reflects broader market apprehensions as traders anticipate critical economic data releases. The NFP report, scheduled for Friday, is widely regarded as one of the most important economic indicators globally.
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