**GBP/USD Remains Subdued as Markets Await Key UK GDP Data**
GBP/USD continues to trade subdued for the third successive session, hovering around 1.3120 during the Asian hours on Thursday. Market participants are closely watching for the United Kingdom (UK) flash Gross Domestic Product (GDP) data for the third quarter, set to be released later today.
**Sterling Faces Pressure on BoE Rate Cut Expectations**
The Pound Sterling (GBP) is facing challenges against its peers amid increasing speculation that the Bank of England (BoE) will opt for an interest rate cut in December. BoE policymaker Megan Greene commented on Tuesday that wage settlement data for next year is higher than desired and highlighted concerns about persistent UK inflation. Greene suggested that monetary policy may need to become more restrictive to address these inflationary pressures.
**US Dollar Advances as Government Shutdown Nears Resolution**
Meanwhile, GBP/USD remains under pressure as the US Dollar (USD) strengthens. Optimism is building that the prolonged US government shutdown could be resolved this week. On Wednesday, the House of Representatives voted 222 to 209 in favor of a funding package that would end the longest government shutdown in US history. The bill is now set to be signed by US President Donald Trump, who has previously backed the bipartisan agreement.
The bill’s approval will allow the release of a tranche of economic data that had been delayed, except for October’s inflation and jobs figures. White House Press Secretary Karoline Leavitt stated on Wednesday that the October jobs and inflation data are unlikely to be released.
**Hawkish Fed Commentary Reduces Rate Cut Odds**
The US Dollar also found support from hawkish remarks by Federal Reserve officials, dampening expectations for a Fed rate cut in December. According to the CME FedWatch Tool, markets are now pricing in nearly a 60% chance of a 25-basis-point Fed rate cut in December, down from 67% a day earlier.
Federal Reserve Bank of Atlanta President Raphael Bostic addressed economic trends at the Atlanta Economic Club on Wednesday. Bostic cautioned that easing policy too soon could “feed the inflation beast,” while also noting that a sharp downturn in the labor market is unlikely in the near term.
**Looking Ahead**
As investors await the UK Q3 GDP data, GBP/USD could face further volatility amid shifting central bank policy expectations and developments in US fiscal policy. Traders will remain attentive to both the upcoming UK data release and any further commentary from central bank officials on both sides of the Atlantic.
https://bitcoinethereumnews.com/finance/gbp-usd-remains-subdued-below-1-3150-ahead-of-uk-flash-q3-gdp-data/
