GBP/USD holds above 1.3420 despite hawkish Fed commentary, as markets await preliminary October US CPI data that lacks year-on-year figures due to the 2025 Federal Government shutdown.
The pair trades around 1.3424, trimming gains after hawkish comments by Fed Governor Waller hinting at a possible 50-basis-point December hike lifted the dollar, but dips remain contained above 1.3420 and most of Monday's gains are intact. The bullish technical structure is still in play while support at 1.3360-1.3340 holds, so the immediate bias is neutral rather than a trend change.
The British Pound trades at 1.3424 on Tuesday, trimming gains as the US Dollar finds support from Federal Reserve Governor Christopher Waller. Waller suggested a 50-basis-point rate hike could occur in December if inflation remains elevated. While the bullish trend remains technically intact, momentum is fading as the pair struggles to maintain levels above 1.3450.
The US Dollar is drawing support from Fed Governor Waller's comments hinting at a possible 50-basis-point rate hike in December if inflation stays high, which has pulled GBP/USD back from above 1.3450, though it still holds most of Monday's gains above 1.3420.
Probably only in a limited way: the preliminary October CPI release lacks year-on-year figures because of the 2025 Federal Government shutdown, so it is missing a key element the Fed uses to guide policy.