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2026-07-01 18:40:11

Pound Sterling Rises on Soft US Data, Hawkish Warsh Comments Limit Gains

BitcoinWorld Pound Sterling Rises on Soft US Data, Hawkish Warsh Comments Limit Gains The British pound edged higher against the US dollar on Tuesday, finding support from a batch of softer-than-expected US economic data. However, gains were tempered by hawkish remarks from Kevin Warsh, a potential candidate for the next Federal Reserve chair, who signaled a cautious approach to rate cuts. Soft US Data Provides Tailwind for GBP/USD Data released on Tuesday showed US consumer confidence dipped in March, while durable goods orders fell short of analyst expectations. The softer figures weighed on the greenback, allowing the GBP/USD pair to climb above the 1.2650 level during European trading. Market participants interpreted the data as a sign that the US economy may be cooling, potentially giving the Federal Reserve more room to ease policy later this year. Warsh’s Hawkish Tone Caps Sterling Optimism In a speech at a financial conference, Kevin Warsh, a former Fed governor and a leading contender to succeed Jerome Powell, warned against premature rate cuts. He emphasized that inflation remains ‘sticky’ in certain sectors and that the central bank must remain vigilant. His comments reinforced a cautious outlook for US monetary policy, which helped limit the dollar’s losses and prevented a more decisive breakout for the pound. What This Means for Traders For forex traders, the conflicting signals create a challenging environment. The pound is benefiting from a softer dollar narrative, but the upside is capped by uncertainty over the Fed’s next moves. The market is now pricing in a roughly 60% chance of a rate cut by June, down from 70% earlier this month. Sterling’s next major test will come later this week with the release of UK GDP revisions and US PCE inflation data, both of which could set the tone for the short-term direction of GBP/USD. Conclusion GBP/USD is caught between a softening US economic outlook and hawkish Fed rhetoric. While the pound has room to extend gains if US data continues to disappoint, Warsh’s comments serve as a reminder that the path to lower rates is not guaranteed. Traders should watch for further cues from both economic data and central bank commentary in the days ahead. FAQs Q1: Why did GBP/USD rise despite hawkish comments from Kevin Warsh? The rise was primarily driven by weaker US economic data, which weighed on the dollar. Warsh’s hawkish comments only limited the upside, preventing a larger rally. Q2: Who is Kevin Warsh and why do his comments matter? Kevin Warsh is a former Federal Reserve governor and a leading candidate to become the next Fed chair. His views on monetary policy are closely watched as they may signal future Fed direction. Q3: What key data should traders watch next for GBP/USD? Traders should monitor the upcoming UK GDP revisions and US PCE inflation data. These releases will provide fresh clues on the economic outlook and monetary policy expectations. This post Pound Sterling Rises on Soft US Data, Hawkish Warsh Comments Limit Gains first appeared on BitcoinWorld .

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