GBPUSD : Continue to recover!

The GBP/USD pair continued its upward trajectory for the second consecutive session, trading around the 1.2710 level during Asian hours on Monday. A weaker US Dollar (USD) bolstered the GBP/USD pair. April's data indicated that US consumer inflation slowed to 0.3%, fueling expectations that the Federal Reserve (Fed) might cut interest rates in 2024. However, the US Fed maintained a cautious stance regarding inflation and the potential for rate cuts in 2024.

According to the CME FedWatch Tool, the likelihood of the Federal Reserve implementing a 25 basis point rate cut in September slightly increased to 49.0%, up from 48.6% a week earlier. This potential easing of monetary policy by the central bank could weaken the US Dollar and strengthen the GBP/USD pair.

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