The Pound Sterling(GBP) regained ground against the US Dollar (USD), albeit within the August 22 trading range. The GBP/USD pair gradually crawled back above the 1.3500 barrier on the renewed upside. 

Pound Sterling oscillated in a range 

GBP/USD entered a consolidative mode following a late rebound last week. The bull-bear tug-of-war extended, but bargain-buying remained in vogue, courtesy of a broad-based US Dollar decline. 

The USD booked a monthly drop, after having a double-whammy from the increased dovish expectations surrounding the Federal Reserve (Fed) on one hand. On the other hand, concerns over the Fed’s independence sapped investors’ confidence in the US currency. 

Dovish Fed commentaries during the week doubled down on Chairman Jerome Powell-led affirmation of an interest rate cut next month.

New York Fed President John Williams noted on Wednesday that “it is likely interest rates can fall at some point but policymakers will need to see what upcoming data indicate about the economy to decide if it’s appropriate to make a cut next month,” per Reuters. 

Late Thursday, Fed Governor Christopher Waller said that he would support a rate cut in the September meeting and further reductions over the next three to six months to prevent the labor market from collapsing. 

Markets maintained their expectations for a September rate cut in the range of 85% to 90%, according to the CME Group’s Fed Watch Tool. 

Moving on, the drama between US President Donald Trump and the Fed intensified ever since Trump announced earlier in the week that he plans to fire Fed Governor Lisa Cook over her false statements on mortgage applications. 

However, Cook stood her ground and said that Trump had no authority to re