GBP/USD Eyes PCE Data as Dovish Fed Minutes Pressure Dollar

The dollar's tone into this week's PCE Price Index release has turned cautious, and GBP/USD is capturing the spillover. Minutes from the latest FOMC meeting leaned dovish, reinforcing expectations that policymakers are inching toward a less restrictive stance.

Consensus forecasts for headline and core PCE inflation, alongside personal income and spending figures, will be scrutinized closely. A softer-than-expected print would validate the dovish minutes narrative and likely accelerate dollar selling, giving sterling further room to climb against the greenback.

Conversely, a hotter reading could force a reassessment of rate-cut timing, injecting fresh two-way volatility into GBP/USD as traders recalibrate Fed expectations heading into the next policy meeting.