British Pound Softens as Fed Rate Uncertainty Lifts Dollar

The GBP/USD pair started the week with a bullish gap at the Asian open, initially pushing higher before paring gains. The pound softened to trade around 1.3290 as the U.S. dollar found support from persistent uncertainty over the Federal Reserve's rate path.

While the pair remains in positive territory on the day, the intraday drift lower highlights renewed dollar demand amid expectations that the Fed may not pivot as quickly as some investors had hoped.