|

GBP/USD consolidates above 1.3450 with muted reaction to US inflation data

  • GBP/USD snaps a three-day winning streak, holds above 1.3450 after US PCE data.
  • Core PCE rises 0.3% MoM, 2.9% YoY, the highest since February.
  • Headline PCE up 0.2% MoM, annual rate steady at 2.6%.

The British Pound (GBP) trades under pressure against the US Dollar (USD) on Friday, snapping a three-day winning streak as the Greenback holds firm. GBP/USD is finding a footing above 1.3450 during the American session, stabilizing after the release of the US Personal Consumption Expenditures (PCE) Price Index for July, which came broadly in line with expectations.

Data from the Bureau of Economic Analysis showed that the Core PCE Price Index rose 0.3% month-on-month in July, matching forecasts and unchanged from June’s pace. On a yearly basis, core inflation edged up to 2.9% from 2.8%, marking its highest level since February. Headline PCE increased 0.2% MoM, in line with estimates but slightly softer than June’s 0.3%, while the yearly rate held steady at 2.6%.

The report also confirmed strong underlying demand. Personal spending grew 0.5% in July, ahead of the expected 0.3% and faster than June’s 0.3% gain. Personal income rose 0.4% MoM, in line with consensus and above the prior 0.3%, reinforcing evidence that household consumption remains resilient despite signs of a softer labor market.

The Greenback extends its firmer tone on the back of these figures, with the US Dollar Index reclaiming levels near 98.00. While Sterling pares back from recent highs, the pair is managing to stay afloat above 1.3450, suggesting that much of the inflation outcome was already priced in. The muted response leaves GBP/USD consolidating, with intraday momentum capped by a stronger US Dollar backdrop.

Technically, immediate support for GBP/USD is seen at 1.3400, followed by the 100-day Exponential Moving Average (EMA) at 1.3368 on the daily chart. On the upside, Thursday’s high at 1.3530 offers the first resistance, ahead of the August 14 peak at 1.3594. A break beyond these levels would open the door for further gains, while failure to hold above 1.3400 could invite deeper corrective pressure.

Pound Sterling Price Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Euro.

USDEURGBPJPYCADAUDNZDCHF
USD0.21%0.39%0.25%0.15%-0.01%-0.09%0.12%
EUR-0.21%0.18%0.03%-0.05%-0.15%-0.26%-0.09%
GBP-0.39%-0.18%-0.20%-0.24%-0.35%-0.42%-0.28%
JPY-0.25%-0.03%0.20%-0.04%-0.29%-0.33%-0.06%
CAD-0.15%0.05%0.24%0.04%-0.18%-0.22%-0.04%
AUD0.01%0.15%0.35%0.29%0.18%-0.13%0.07%
NZD0.09%0.26%0.42%0.33%0.22%0.13%0.20%
CHF-0.12%0.09%0.28%0.06%0.04%-0.07%-0.20%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

Author

Vishal Chaturvedi

I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.

More from Vishal Chaturvedi
Share:

Editor's Picks

AUD/USD turns south toward 0.6900 as USD firms up

AUD/USD sees fresh selling and drops toward 0.6900 in late Asian trading on Monday, as renewed US Dollar strength weighs on the pair amid lingering Middle East and Russia-Ukraine geopolitical tensions. Focus remains on Oil prices, Treasury bond yields, and RBA expectations for fresh trading impetus in the major.

USD/JPY retakes 158.00 amid hawkish BoJ bets, firmer USD

USD/JPY erases losses and retakes 158.00 in the Asian session on Monday, trading within a one-week-old range. Geopolitical uncertainty continues to underpin the US Dollar, despite fading Fed rate hike hopes, supporting the pair's rebound. However, further upside could be capped by hawkish BoJ expectations and looming intervention risks that could support the Japanese Yen.

Gold languishes below $4,200 amid high US yields

Gold trims some losses on Monday, but remains trapped within previous ranges, with upside attempts limited below $4,200 and with two-month lows of $4,110 at a short distance. The recent pullback on the US Dollar Index has provided some support for precious metals although the high US Treasury yields are keeping a floor on US Dollar dips so far.

Pi Network risks a steeper decline as bearish momentum builds

Pi Network extends losses below $0.090 maintaining a steady decline for the fifth consecutive day. The retail demand remains firm, with the notional value of active perpeutals holding above $10 million. The technical outlook for PI remains bearish as bearish momentum mounts.

ISM Services PMI expected to show robust US economy in September

On Monday, we’ll get the latest read on the US services sector when the Institute for Supply Management publishes its September gauge. Consensus points to a marginal uptick to 55.7 from August’s 55.4. If confirmed, the reading is unlikely to significantly dent the current sector’s resilience and confidence in the broader economy.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.