GBP/USD consolidated within a relatively narrow range on Tuesday as recent remarks from influential Fed official Christopher Waller heightened the focus on incoming U.S. data after he said incoming economic figures will ultimately determine his decision at the next policy meeting, even though he currently leans in favor of a rate cut.

That said, for GBP/USD, the pair will likely be driven by the dollar side of the equation, particularly with little uncertainty over the Bank of England’s near-term policy outlook where policymakers are expected stand pat of rates later this month.

A benign impact on Fed pricing from the latest JOLTs report, where a topside surprise in the headline had been somewhat tempered by the revision lower in the prior month’s release.
As a result, market pricing continues to attach a roughly 70% chance of a cut later this month.

Looking ahead, with this week's payrolls report being the key point data to watch, choppy conditions are likely to persist for now.

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