GBP/USD holds below 1.2500 ahead of Fed rate decision

• GBP/USD trades on a weaker note near 1.2490 on Wednesday. 
• US Fed is anticipated to hold rates steady in its 5.25%–5.50% range for the sixth straight meeting on Wednesday.
• The dovish remarks of the BoE weigh on the Cable.

The GBP/USD pair holds below 1.2490 during the early Asian session on Wednesday. The downtick of the major pair is supported by the stronger US Dollar (USD) amid the cautious mood ahead of the US Federal Reserve’s (Fed) interest rate decision later on Wednesday. 

On Tuesday, the US Conference Board’s (CB) Consumer Confidence dropped to 97.0 in April from 103.1 in the previous reading, the lowest level since July 2022. Meanwhile, the Chicago Purchasing Managers’ Index fell to 37.9 in April from 41.4 in March, below the market consensus of 44.9. This figure registered the lowest level since November 2022. Finally, the US Employment Cost Index (ECI) rose by 1.2% QoQ in Q1 2024 from a 0.9% rise in Q4 of 2023, beating the estimation of 1%.