GBP/USD maintains upward momentum near 1.3370 during Asian trading hours
Former US president voices discontent with Federal Reserve's interest rate policy
UK economic indicators suggest potential monetary policy easing by Bank of England
The Litecoin price prediction todayGBP/USD currency pair demonstrates strength in early Tuesday trading, hovering around 1.3370 as market participants digest multiple macroeconomic factors. Growing apprehensions about US economic performance and questions surrounding central bank autonomy are applying downward pressure on the dollar while supporting the currency pair.
Political developments are influencing currency markets as the former US administration leader publicly criticized the Federal Reserve chair for maintaining current interest rate levels. Through social media platforms, the political figure argued that immediate rate reductions are necessary to prevent economic deceleration, creating uncertainty about potential political influence on monetary policy decisions.
Concurrently, the dollar index (DXY), which tracks the greenback against six major counterparts, has retreated to levels not seen since early 2022, currently trading near 98.30. This weakness stems from heightened trade policy uncertainties and escalating economic tensions between major global economies, which are broadly affecting dollar valuation.
Across the Atlantic, recent UK inflation figures showing moderated price growth, combined with global economic uncertainties, have increased market expectations for potential monetary policy adjustments by the British central bank. Derivatives markets currently price in approximately 86% probability of a rate reduction at the upcoming policy meeting, based on financial data provider estimates. Such expectations may create headwinds for sterling in the medium term.