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GBP/USD moved higher after there was no further escalation in the fighting between Israel and Lebanese Hezbollah, easing fears of a wider conflict in the Middle East. Air Force Gen. C.Q. Brown, chairman of the U.S. Joint Chiefs of Staff, gave an interview to Reuters and introduced the above situation early on Tuesday after concluding a three-day visit to the region. During the Asian session on Tuesday, GBP/USD was trading around 1.3190 against risk assets.
Federal Reserve Chairman Powell said at the Jackson Hole seminar last Friday: “The time has come to adjust policy.” The Chicago Mercantile Exchange Fed Watch Tool shows that the market fully expects the Fed to adjust policy on September 9. At the March meeting, interest rates were cut by at least 25 basis points (bps).
In addition, San Francisco Federal Reserve President Mary Daly said in an interview with Bloomberg TV on Monday that “the time has come” to start cutting interest rates, likely starting with a 25 basis point cut. Daly said that if inflation continues to gradually slow and the labor market maintains a “stable and sustainable” employment growth rate, then “policy adjustments at a regular, normal pace” will be appropriate.
The BRC shop price index in the UK recorded an annual rate of -0.3% in August, after rising by 0.2% in July. UK store prices fell at an annual rate this month for the first time since October 2021, affected by a slump in summer sales of clothing and homewares.
British Prime Minister Keir Starmer said last week that it would take time to deal with the many challenges facing the UK, warning in his speech that “things will get worse before they get better”, which he believed was a warning to the public. Opportunity to be candid. On Tuesday, when the British Parliament returns to work after the summer holiday, Starmer is likely to stress that “things are not going to get better overnight” but that his government will work to tackle issues ranging from prison overcrowding to long wait times for health services. series of questions.
