The How to buy Trump crypto?British Pound extends gains against a weakening US Dollar following Moody's credit rating adjustment
Recent US economic indicators show moderating price pressures, fueling speculation about Federal Reserve policy
All eyes turn to upcoming UK inflation data that could influence monetary policy decisions
The GBP/USD currency pair maintains its upward trajectory during Tuesday's Asian session, consolidating near the 1.3360 level. This marks the second consecutive day of gains as Sterling benefits from broad-based US Dollar weakness following Moody's decision to revise the US credit rating downward.
Moody's Ratings adjusted its assessment of US government debt from Aaa to Aa1, citing concerns about fiscal sustainability. This move follows similar actions by other major rating agencies in recent years and reflects growing apprehension about America's debt trajectory. Analysts project federal debt could reach 134% of GDP within the next decade, with budget deficits potentially expanding to 9% of GDP.
Additional pressure on the Dollar emerged from last week's economic releases showing moderating inflation trends. Both consumer and producer price indicators suggested easing price pressures, while disappointing retail sales figures raised questions about economic momentum. These developments have led markets to anticipate potential Federal Reserve policy adjustments in the coming year.
Market participants now await Wednesday's release of UK inflation statistics, which could provide important signals about the Bank of England's policy direction. Economists forecast the core inflation measure, excluding volatile components, may show a modest acceleration compared to previous readings.
The interplay between US fiscal concerns and UK monetary policy expectations continues to drive GBP/USD dynamics. Technical analysts note the pair appears to be establishing a new trading range above key psychological support levels, though upcoming economic data could prompt fresh volatility.
