Sterling was marginally firmer near 1.3300 against the US Dollar in European trading on Wednesday as the greenback eased before the Federal Reserve’s policy decision at 18:00 GMT. The Dollar Index (DXY) slipped towards 101.30, while markets weighed the likelihood of another hold after four straight meetings without a change. CME FedWatch put the probability of rates staying in the 3.50%–3.75% range at 69.5%, with attention also on the policy statement and Chair Kevin Warsh’s press conference for guidance on inflation and the outlook, including the impact of military aggression in the Middle East.
Market Focus on Central Bank Decisions
Focus then turns to Thursday’s Bank of England decision, where rates are expected to remain at 3.75% on a 7–2 vote.
Sterling Technical Overview
In price action, GBP/USD stayed under the 20-day EMA at 1.3353 and below a former downtrend line near 1.3489, keeping the near-term bias tilted lower. The 14-period RSI sat around 44, with additional levels in view: a late-June low in the mid-1.31s, a mid-July high in the mid-1.35s, support at 1.3250 and resistance at 1.3350, while the RSI was flagged as threatening a move below 40.
