01.09.202509:43:18UTC+00GBP Strengthens Amid Fed Uncertainty and UK Fiscal Watch

The British pound has maintained its strength above the $1.35 mark, reaching its highest level since mid-August. This appreciation is largely attributed to a general weakening of the US dollar, as investors keenly await forthcoming US labor statistics due later this week, alongside the anticipated 25 basis point interest rate cut by the Federal Reserve in September. The dollar has encountered pressure due to apprehensions regarding the Federal Reserve's autonomy, especially in the wake of a court hearing about President Trump's initiative to dismiss Fed Governor Cook. Additionally, ongoing trade uncertainties persist after a federal appeals court declared the majority of Trump's tariffs unlawful. Domestically, investor attention is centered on the scheduling of the Autumn Budget as Parliament reconvenes post-summer recess. Moreover, the Treasury Committee’s interrogation of Bank of England policymakers will be closely monitored for insights on prospective interest rate cuts and potential modifications to the central bank's quantitative tightening policy.