• The Pound Sterling aims to extend its five-day winning spell against the US Dollar.
• Investors await the August S&P Global PMIs for both the UK and the US.
• The major event this week will be Powell and Bailey’s speeches at Jackson Hole. 

The Pound Sterling (GBP) clings to gains near the round-level resistance of 1.3100 in Thursday’s London session. The GBP/USD pair is expected to move sideways after a five-day winning streak, with investors focusing on the flash August S&P Global Purchasing Managers’ Index (PMI) data for both the United Kingdom (UK) and the United States (US), which will be published at 08:30 GMT and 13:45 GMT, respectively.

The broader outlook of the Cable remains positive as the US Dollar trades on the backfoot, with growing speculation that the Federal Reserve (Fed) will start reducing interest rates from its September meeting. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, hovers near 101.00, the lowest level seen this year.

The confidence of investors that the Fed will pivot to policy normalization has increased after the Federal Open Market Committee (FOMC) minutes for the July 30-31 meeting showed that some policymakers suggested cutting borrowing rates already back then. Still,  the “vast majority” of officials said that "if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting,” according to the minutes.