GBP/USD: Pound vs. Dollar Awaits Fed's Clues On Monetary Policy

The Pound US Dollar (GBP/USD) exchange rate is holding above $1.32 and moving northwards for a third straight session.

The Speech by Federal Reserve Jerome Powell is expected to be the highlight of the week. Jerome Powell could hint towards changing policy to Average Inflation Target (AIT), which would keep interest rates low for longer. A move towards AIT could send the US Dollar on its next leg lower.

Elsewhere, UK car production jumped 51% in July vs June as production and demand ramp up following lockdown. However, production is still -21% compared to last year.

The UK service sector is haemorrhaging jobs as the UK government withdraws from the job retention scheme.