Ella 
In Asia on Tuesday, GBP/USD rose for the fifth consecutive day and was around 1.2560. A weak US dollar has provided some support for GBP/USD. The Bank of England’s (BOE) interest rate decision on Thursday will be the focus, and the Bank of England is expected to remain on hold.
Investors have increased their bets on the Federal Reserve cutting interest rates this year after U.S. employment data for April slowed more than expected last week. Speeches from Fed officials this week may provide some hints about future monetary policy. On Monday, Richmond Fed President Thomas Barkin said the current level of interest rates should be enough to cool the economy and bring inflation to the 2% target, and that the strong job market gives officials time to adjust to the trend of inflation. Decline with confidence.
Meanwhile, New York Fed President John Williams said that while a rate cut will happen, monetary policy is in a very good situation. Later in the day, Minneapolis Fed President Neel Kashkari will speak. A dovish tone from Fed officials could push the dollar lower and provide a temporary boost to GBP/USD. Financial markets have priced in a 46 basis point rate cut by the Fed by the end of 2024, with the first cut expected in September or November, according to London Stock Exchange Group (LSEG) rate forecasts.
