The Pound Sterling against the USD (GBP/USD) rose slightly during the Asian session but remained below 1.26. The fundamental backdrop supports a negative outlook, with caution needed regarding a rebound from the lowest level in five weeks. The BoE Governor stated the possibility of a rate cut.

Several Federal Reserve (Fed) officials expressed their concerns about stagnant inflation and stronger-than-expected US macro data. Atlanta Fed President Raphael Bostic predicted a gradual slowdown in the US economy and inflation, along with only one rate cut this year. Meanwhile, Chicago Fed President Austan Goolsbee emphasized the need to see progress in inflation in line with the central bank's dual mandate. Fed Governor Lisa Cook noted the risks if policy easing is too aggressive and late.

Nonetheless, the Fed last week signaled a possible cut of 75 basis points this year, which could affect US Treasury yields. This, along with positive sentiment in the stock market, may curb the bullish tendency of the US Dollar as a safe haven, providing support for the GBP/USD pair. Market participants are looking forward to US economic data, including Durable Goods Orders, the Conference Board Consumer Confidence Index, and the Richmond Manufacturing Index, for further direction.

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