GBP/USD remains below 1.2800 ahead of second testimony by Fed’s Powell

• 
  GBP/USD
  struggles
  as
  the
  US
  Dollar
  improves
  due
  to
  the
  cautious
  stance
  of
  Fed
  Chair
  Powell.
• 
  Fed
  Chair
  Powell
  stated,
  “First-quarter
  data
  did
  not
  support
  the
  greater
  confidence
  in
  the
  inflation
  path.”
• 
  BoE
  policymaker
  Jonathan
  Haskel
  stressed
  maintaining
  steady
  interest
  rates
  until
  there
  is
  greater
  certainty
  that
  inflationary
  pressures
  have
  subsided.

GBP/USD
remains
tepid
for
the
second
consecutive
day,
trading
around
1.2780
during
the
Asian
session
on
Wednesday.
The
decline
of
the
GBP/USD
pair
can
be
attributed
to
the
strengthening
US
Dollar
(USD),
which
has
gained
momentum
following

Federal
Reserve
Chairman
Jerome
Powell’s
testimony
before
the
US
Congress
on
Tuesday.
Powell
acknowledged
improving
inflation
data
but
reiterated
the
Fed’s
cautious
stance.

Fed
Chair
Jerome
Powell
stated,
“More
good
data
would
strengthen
our
confidence
in
inflation.”
Powell
emphasized
that
a
“policy
rate
cut
is
inappropriate
until
the
Fed
gains
greater
confidence
that
inflation
is
headed
sustainably
toward
2%.”
He
also
noted
that
“first-quarter
data
did
not
support
the
greater
confidence
in
the
inflation
path
that
the
Fed
needs
to
cut
rates.”

Traders
anticipate
the
second
semi-annual
testimony
by
Fed
Chair
Jerome
Powell
and
speeches
by
the
Fed’s
Michelle
Bowman
and
Austan
Goolsbee
on
Wednesday.
Additionally,
attention
will
be
on
the
US
Consumer
Price
Index
(CPI)
data,
set
to
be
released
on
Thursday.

In
the
United
Kingdom
(UK),

Bank
of
England
(BoE)
policymaker
Jonathan
Haskel
has
recommended
maintaining
current
interest
rates
due
to
persistent
price
pressures
in
the
job
market.
Haskel
emphasized,
“I
prefer
to
keep
rates
steady
until
we
see
more
assurance
that
underlying
inflationary
pressures
have
truly
diminished,”
according
to
Reuters.

The
Pound

Sterling
(GBP)
has
shown
subdued
movement
against
major
currencies
as
attention
turns
toward
upcoming
economic

indicators.
Specifically,
investors
are
anticipating
the
release
of
the
UK’s
monthly
Gross
Domestic
Product
(GDP)
and
May’s
factory
data,
scheduled
for
publication
on
Thursday.