GBP/USD Eyes Volatility if Fed Delivers Triple Hike
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Historical Fed behavior suggests one rate hike is rarely the end of a cycle, and economists now flag the possibility of three increases rather than a single move. For GBP/USD, this shifts the medium-term narrative from a single shock to a sustained dollar-bullish trend.
A multi-hike scenario would likely compound pressure on sterling, particularly if the Bank of England maintains a more cautious tightening path in comparison.
This divergence risk makes GBP/USD a focal point for traders tracking the Fed's forward guidance, as each additional hike could extend dollar momentum against the pound.