GBP/USD CLIMBS AFTER FOMC HOLD RATES, REVISE LONG-TERM PROJECTIONS

• GBP/USD sees a significant uptick, navigating the 1.2700/1.2750 range following the Federal Reserve's rate decision.
• Fed holds interest rates steady, with an emphasis on the ongoing strength of the US economy and labor market.
• Despite high recent inflation, Fed's projections for 2024 remain stable; slight adjustment made for 2025 FFR outlook.

The GBP/USD climbed sharply after the Federal Reserve’s (Fed) decision to hold rates but kept their interest rate cut projections unchanged for 2024. Consequently, the Greenback tumbled, while US Treasury bond yields climbed. At the time of writing, the GBP/USD trades volatile in the 1.2700/1.2750 area ahead of Fed Chair Jerome Powell's press conference.