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fxJun 11, 2026, 1:51 AM

GBP/USD Edges Higher to 1.3385 Despite Fed Rate Hike Expectations

GBP/USD rose to around 1.3385 during Asian trading on Thursday, but gains may be capped as markets anticipate higher US interest rates for longer.

GBPUSD

The British pound nudged higher against the US dollar, with GBP/USD trading near 1.3385 in the Asian session on Thursday. The move comes despite growing expectations that the Federal Reserve will keep interest rates higher for longer, which typically supports the dollar.

Traders are weighing the near-term bullish momentum against the broader headwind from US monetary policy. The pair’s upside appears limited as markets price in a prolonged period of elevated US rates, potentially capping further gains for sterling.

Source: FXStreet Forex News