Pound Sterling Price News and Forecast: GBP/USD rises amid soft US inflation data

FXStreet Team FXStreet

British Pound advances as US Dollar remains subdued following inflation data

GBP/USD rises for the second consecutive day, trading around 1.3400 during the Asian hours on Wednesday. The pair appreciates as the US Dollar (USD) holds losses following softer-than-expected US inflation data, fueling hopes that the US Federal Reserve (Fed) might adopt a less hawkish monetary stance.

The US Consumer Price Index (CPI) inflation eased to 3.5% year-over-year in June, dropping from a three-year high of 4.2% in May and coming in well below the market consensus of 3.8%. On a monthly basis, headline CPI actually declined by 0.4% in June, a notable shift from the 0.5% increase recorded in May. Read more...

British Pound gains traction above 1.3400 as softer US CPI dampens Fed rate hike expectations

The GBP/USD pair gains ground to near 1.3405 during the early Asian session on Wednesday. The US dollar (USD) weakens against the British Pound (GBP) as softer-than-expected US inflation in June tempered expectations for US Federal Reserve (Fed) policy tightening. The release of the US June Producer Price Index (PPI) report will be in the spotlight later in the day.

US inflation slowed more than expected in June, with the US Consumer Price Index (CPI) rising by 3.5% YoY in June, compared to 4.2% in May, the US Bureau of Labor Statistics (BLS) showed on Tuesday. This figure came in cooler than the expectation of 3.8%. On a monthly basis, the headline CPI declined by 0.4% in June, versus a rise of 0.5% prior. Read more...

The softest US inflation print in six years buys British Pound Sterling about four hours

Cable trades just beneath the 1.3400 handle late in Tuesday's session, pinned under a 200-day Exponential Moving Average (EMA) that sits a few pips shy of the figure and has capped every recovery attempt for two weeks. The softest US inflation report in six years landed at 12:30 GMT; the pair spiked to within a few pips of 1.3450 and has since handed the entire move back.

Tuesday's rejection carries more weight than one headline normally earns: the bounce from early July's trough near 1.3150 has run directly into the falling 200-day average, the daily Stochastic Relative Strength Index is stretched above 80, and Sterling must now explain why the best inflation news the Dollar could hand it was worth roughly four hours of gains. Read more...

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FXStreet Team

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