British Pound holds steady above 1.3500 vs USD as traders eye US CPI ahead of UK GDP
The GBP/USD pair extends its sideways consolidation around the 1.3500 psychological mark through the first half of the European session on Wednesday. Traders opt to wait on the sidelines ahead of important macro data from the US and the UK.
The British Pound has maintained a steady position above 1.3500 against the US Dollar as market participants await key economic data from both nations. With the US Consumer Price Index report expected later on the same day, and the preliminary UK GDP figures and US Producer Price Index to be released on Thursday, traders are cautiously observing the situation.
Recent hawkish expectations surrounding the US Federal Reserve's interest rate decisions have supported the Dollar, potentially exerting a downward pressure on the GBP/USD pair. Analysts from Deutsche Bank have noted that the magnitude of this influence is still uncertain, as "futures this morning are pointing to a 51% chance of a September hike."
However, the delicate balance of risks could quickly change if the US data reveals a significant surprise, as it could significantly impact the Dollar's price. The geopolitical tension between the United States and Iran, particularly around the Strait of Hormuz, has also bolstered the safety of the US Dollar. Additionally, the Bank of Japan's anticipated rate hike and the recent surge in the US diesel crack spread to record levels have further added to the Dollar's appeal.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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