British Pound clings to gains against US Dollar, US CPI in focus

The British Pound (GBP) maintained slight gains against the US Dollar (USD) throughout the Asian trading session on Tuesday, settling around 1.3500. Despite the GBP/USD pair holding strong, financial markets have discounted the likelihood of the Bank of England (BoE) raising interest rates in the near term. The British Pound showed the strongest performance this week against the Japanese Yen.

Analysts from Rabobank noted a reduced expectation of a rate hike by the BoE by the end of the year for the UK. Important economic data from the UK, including Q2 and June GDP figures, is slated to be released on Thursday. Meanwhile, the US Dollar Index (DXY) remained nearly unchanged at Monday's recovery level of 99.80, awaiting the US Consumer Price Index (CPI) data for July, which will be released on Wednesday.