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GBP/USD remains stable for the second consecutive day, trading around 1.2750 during the Asian session on Tuesday. The risk-sensitive pair could face challenges as the US Dollar (USD) continues to gain ground due to market caution ahead of the US Consumer Price Index (CPI) data scheduled to be released on Wednesday.The Federal Reserve Bank of New York highlighted in its latest consumer survey summary that US consumers are navigating uncertain economic expectations. The survey indicated a sharp improvement in consumers’ outlook on their financial situations and the federal government’s fiscal condition, alongside a significant shift in expectations regarding debt affordability and credit conditions.US November NFP data from Friday showed a robust 227,000 gain, well above expectations, and stable Average Hourly Earnings growth at 0.4% MoM. Traders are now pricing in nearly an 85.8% chance of Fed rate reductions by 25 basis points on December 18, according to the CME FedWatch Tool.The Pound Sterling (GBP) hovers near four-week highs as investors await key economic data and upcoming central bank meetings. Data due next Friday is expected to show the UK economy rebounding in October, alongside signs of recovery in the manufacturing sector. The Bank of England (BoE) is widely anticipated to keep interest rates unchanged at its December 19 meeting.On Monday, BoE Deputy Governor for Markets and Banking, Sir Dave Ramsden, emphasized the need for the central bank to remain “vigilant” amid heightened uncertainty surrounding the UK’s economic outlook.More By This Author:Silver Price Forecast: XAG/USD Rises To Near $32.00 Within An Ascending Channel NZD/USD Hovers Around 0.5900, Downside Risk Appears Due To Market Caution USD/CHF Price Forecast: Appreciates Toward Nine-Day EMA Near 0.8850
