Hawkish BoE drives GBP/USD higher ahead of FOMC Minutes

During the North American session, the GBP/USD pair has gained 0.26%, supported by hawkish remarks made by Bank of England officials and weak US economic data. The pair is trading at 1.2536 at the time of writing.

The Federal Reserve’s most recent monetary policy meeting minutes, which are predicted to show a data-dependent approach to future policy decisions, are what traders of GBP/USD are waiting for. Inflation is headed towards the 2% target, according to Governor Andrew Bailey, but the odds are in favour of an increase.

One of the BoE’s more aggressive members, Catherine Mann, supports further tightening to guarantee that inflation returns to target. With the exception of the housing market, where US Existing Home Sales fell by -4.1% in October, the US economy is displaying signs of resilience.

The latest minutes of the US Federal Reserve’s monetary policy meeting are anticipated to be made public, and they may indicate that the Fed will base future policy decisions on data. A correction may occur if the Fed adopts a more hawkish stance, with sellers targeting the 200-DMA.