Anna 
During Monday’s European session, the Pound Sterling (GBP) neared an almost two-month high, trading around 1.2700 against the US Dollar (USD). The GBP/USD pair saw strength as the USD retreated, with financial markets expressing confidence in the Federal Reserve (Fed) initiating interest rate cuts starting from the September meeting.
The optimism surrounding Fed rate cuts has been bolstered by a decline in the United States Consumer Price Index (CPI) data and signs of easing labor market conditions, as evidenced by recent Employment and Initial Jobless Claims figures.
Despite less favorable economic indicators, Fed policymakers continue to lean towards maintaining a restrictive stance on interest rates. They argue that a singular decline in inflation does not suffice to instill confidence in the sustainable return of price pressures to the desired 2% rate.
Looking ahead, investor focus will be on the release of the Federal Open Market Committee (FOMC) minutes scheduled for Wednesday. Analysts anticipate that the FOMC minutes will underscore policymakers’ emphasis on maintaining restrictive interest rates for an extended duration.
