Photo by Colin Watts on Unsplash 
 

GBP/USD found little momentum on either side of the line on Monday, with the Cable pair churning chart paper just north of the 1.3300 handle to kick off a fresh trading week. Broad-market sentiment is largely hinging on an upcoming interest rate decision from the Federal Reserve (Fed) due during the midweek, and investors are shunning stepping too far into either the bullish or bearish side in the runup to one of the biggest rate calls of the year.

Fed rate call in the barrel
 

The Fed will wrap up two straight days of interest rate deliberations with a rate call and press conference on Wednesday, December 10. Markets are broadly anticipating a third straight interest rate cut from the Fed, with rate markets pricing in over 90% odds that the Fed will drop interest rates by another 25 basis points to round out the calendar year.

Beyond the decision itself, attention is turning to what Fed Chair Jerome Powell will signal about the path ahead. With cooling labor data and Powell’s term running to 2026, analysts expect him to emphasize a cautious, data-dependent approach rather than offering clear clues about the pace of cuts next year.

UK traders look ahead to meaningfui events
 

This week is downright sedate on the UK side of the economic data docket, but Pound Sterling trading will be bracing for a hectic release schedule next week, culminating in a potential interest rate cut from the Bank of England (BoE).

The array of policy stances at the BoE tends to be much wider than the often-sterilized statements from the American Fed, but BoE officials have been pivoting steadily into publicly embracing the idea of further interest rate cuts ever since the Monetary Policy Committee (MPC) voted by just a slim majority to keep rates on hold at the BoE’s last rate decision.

GBP/USD daily chart
 

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