GBP/USD Remains Firm Above 1.2600 Amid Anticipation of Fed and BoE Speeches

GBP/USD is holding steady above the 1.2600 level, trading around 1.2605 as the US Dollar weakens slightly. The pair has bounced back after a two-day decline, supported by lower US Treasury bond yields. Investors eagerly await speeches from policymakers at the Federal Reserve (Fed) and the Bank of England (BoE) for potential market-moving insights.

UK Retail Sales data for February, released by the Office for National Statistics, showed no change compared to expectations of a 0.3% decline. This was a positive sign for the UK economy, particularly after experiencing a technical recession in the second half of last year. Attention now turns to Thursday’s release of UK GDP growth numbers, forecasted to show a slight contraction. Better-than-expectedBetter-than-expected data could strengthen the Pound Sterling and further support GBP/USD.

Meanwhile, speculation is mounting that the Fed may begin cutting interest rates as early as June, which could limit the upside potential for the US Dollar. Fed Chair Jerome Powell recently reiterated the central bank’s readiness to adjust rates if economic growth falters. Market indicators suggest a high probability of a rate cut in the June meeting, according to CME Group’s FedWatch tool.

Investors will closely monitor vital economic indicators such as the Chicago Fed National Activity Index, US New Home Sales for February, and speeches from Fed’s Raphael Bostic and BoE’s Catherine Mann. Thursday, we will highlight GDP growth numbers from the UK and the US, offering further guidance for the GBP/USD pair.

GBP/USD