The British Pound slips again as bets on an October Fed hike build
GBP/USD has stalled at 1.3400 in each of the last three sessions, and it trades just under that level again on Monday. The Dollar is up against most major currencies, so this is more a Dollar move than a Pound one. Traders put the odds of a second Fed increase on October 28 at 53%, according to CME FedWatch, up from about 40% straight after the September 16 decision. The UK calendar before Friday has a borrowing figure, two surveys and three speeches, and none of them changes the UKs interest rate. A second Fed increase is now more likely than not, eight days before the Bank of England next meets Chicago Fed President Goolsbee said in London on Monday that if US inflation is coming from overheated demand as well as from oil and tariffs, the Fed‘s increases should be bigger and come sooner. Talk like that raises the odds of an October increase, and higher odds have meant a stronger Dollar against the Pound since September 16. Fed Chair Warsh said on September 16 that the Fed needn’t hurt the job market to cut inflation, and President Goolsbee‘s remarks say doing it fast means pushing employment below the Fed’s goal. The









