12.01.202610:02:42UTC+00Pound Gains as Dollar Weakens Amid Fed Concerns

The British pound advanced toward the $1.35 mark, nearing last week’s peak of over three months at $1.357, as investors shifted away from the dollar due to concerns regarding the Federal Reserve's independence. Fed Chair Jerome Powell revealed on Sunday that the US Department of Justice had issued a subpoena to the Fed last Friday concerning headquarters' cost overruns. Powell described the investigation as a strategy within President Trump's ongoing efforts to exert pressure on the central bank to reduce interest rates. Market participants are also anticipating significant economic data this week, including the UK’s monthly GDP figures. Additionally, a survey conducted by the Recruitment & Employment Confederation in collaboration with KPMG indicated that UK employers reduced hiring activities in December. This reduction comes as businesses grapple with increasing costs and subdued sentiment following the Labour party's tax-increasing budget on November 26.