GBP/USD Eyes Fed Pause as Dollar Momentum Cools
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Cable traders are recalibrating positions ahead of an expected Federal Reserve pause this month, with policymakers signaling a possible return to tightening in December rather than acting immediately. That delay removes a near-term catalyst for dollar strength, giving GBP/USD room to stabilize as rate-differential pressure eases temporarily.
Resilient US growth and inflation that remains above target mean the pause is unlikely to be the end of the hiking cycle. For GBP/USD, this keeps a two-sided risk profile intact: any hawkish re-acceleration in Fed rhetoric could quickly reassert dollar demand and cap sterling's upside attempts in the weeks ahead.