Ella 
GBP/USD rebounded slightly from key support near 1.3300 during the London session on Thursday after a sharp correction on Wednesday. The pair found support as investors widely believed the Federal Reserve’s (FED) policy easing cycle would be deeper and faster than the Bank of England’s (BOE) policy easing cycle for the rest of the year.
The central bank is expected to cut its key lending rate by a further 75 basis points (bps) at its two remaining meetings this year, according to the CME FedWatch tool, which suggests there will be one 50 basis point cut and one 25 basis point cut. Pricing data for 30-day federal funds futures showed the chance that the Fed will cut interest rates by a larger margin than usual in November has risen to 61% from 39% a week ago.
For new clues on interest rates, investors will pay attention to speeches by many Federal Reserve policymakers, including Federal Reserve Chairman Jerome Powell, during the North American session. Last week, Powell stressed at a press conference after the monetary policy decision to cut interest rates by 50 basis points that further policy action would still depend on the data.
On the economic front, market participants are awaiting U.S. personal consumption expenditures (PCE) data for August due out on Friday. Signs of further slowing in inflationary pressures will prompt market expectations that the Federal Reserve will cut interest rates by 50 basis points, while hot data will weaken these expectations.
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