On Wednesday, the GBP/USD cleared some of its gains following the Federal Reserve (Fed) decision to hold rates steady at 5.25%-5.50% and stands at 1.2830.
Fed holdsrates steady at 5.25%-5.50% as expected. Dot plot indicatesthat mostFOMC members are seeing fewer rate cuts this year. As an initial reaction, the USD recovered and the pair cleared some of its daily losses. On Wednesday, the GBP/USD cleared some of its gains following the Federal Reserve decision to hold rates steady at 5.25%-5.50% and stands at 1.2830. What strengthened the USD is that the dot plot suggested that the members are seeing two instead of three rate cuts in 2024.
As a reaction, the USD recovered some ground following the soft Consumer Price Index figures from May, which triggered a sharp decline in US Treasury bond yields earlier in the session. The US 2, 5 and 10-year rates cleared some losses but are still down by more than 2%. GBP/USD technical analysis Indicators on the daily chart significantly recovered and remain deep in positive terrain.
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