Key events today:

14:00 UTC: USD – Federal Reserve Chairman Jerome Powell will deliver a speech.

The GBP/USD pair remains weak for the second consecutive day, trading around the 1.2780 mark during the Asian session on Wednesday. The decline in the GBP/USD pair can be attributed to the strengthening of the US dollar (USD), which gained momentum after Federal Reserve Chairman Jerome Powell’s testimony before the US Congress on Tuesday. Powell acknowledged improvements in inflation data but confirmed the Fed’s cautious stance.

Federal Reserve Chairman Jerome Powell stated, “Better data will bolster our confidence in inflation.” Powell emphasized that “a rate cut is not appropriate until the Fed gains more confidence that inflation is sustainably moving towards 2%.” He also noted that “first-quarter data did not contribute to greater confidence that inflation will follow the path necessary for the Fed to lower rates.”

Traders are anticipating the second semi-annual testimony from Federal Reserve Chairman Jerome Powell, as well as speeches from Fed officials Michelle Bowman and Austan Goolsbee on Wednesday. Additionally, attention will be focused on the US Consumer Price Index (CPI) data to be released on Thursday.

In the UK, Bank of England policymaker Jonathan Haskel recommended maintaining current interest rates due to persistent price pressures in the labor market. Haskel emphasized, “I prefer to keep rates unchanged until we see more assurance that underlying inflationary pressures have truly diminished,” reports Reuters.

The British pound (GBP) is showing subdued movement against major currencies as attention shifts to upcoming economic indicators. In particular, investors are awaiting the release of the UK’s monthly Gross Domestic Product (GDP) data and May factory output figures, which are scheduled for Thursday.

Recommendations: Monitor the 1.2800 level. On a rebound, accumulate Buy positions. If it stabilizes below, accumulate Sell positions.