Ella 
GBP/USD remains under selling pressure and traded in negative territory for the fourth consecutive week during the European session on Tuesday. The pair is currently trading around 1.2203, down 0.07% on the day.
The Bank of England decided to keep the benchmark interest rate unchanged at a 15-year high of 5.25%, ending the 14th consecutive interest rate increase since December 2021. This could weigh on GBP/USD. Bank of England officials said future meetings are possible, indicating that the Bank of England may or may not raise interest rates if necessary.
On the other hand, the Fed’s hawkish stance boosts the US dollar and is negative for GBP/USD. Earlier on Tuesday, Minneapolis Fed President Neel Kashkari said he was among Fed policymakers who believe there will be one more interest rate hike this year. He added that U.S. interest rates may have to be higher and stay higher for longer to reduce inflation. Previously, Boston and San Francisco Fed Presidents Susan Collins and Mary Daly emphasized that although inflation is slowing, interest rate hikes are still possible in the future. Chicago Fed President Austan Goolsbee said that a soft landing is possible, but the risk of inflation remains high and the Fed should go all out to increase the inflation rate to 2%.
Meanwhile, the U.S. dollar index, which measures the greenback’s value against a basket of currencies, held steady above the 106 mark, near its highest level since November. In addition, the 10-year U.S. Treasury yield climbed to 4.546%, the highest level since October 2007.
Market participants will focus on Tuesday’s U.S. Conference Board consumer confidence index and new home sales for September. The focus will then turn to UK second-quarter GDP and US core PCE price index due on Friday.
