Pound Sterling Price News and Forecast: GBP/USD struggles to lure buyers ahead of crucial UK inflation data

FXStreet Team FXStreet

GBP/USD consolidates in a range above mid-1.2700s ahead of inflation data from UK and US

The GBP/USD pair ticks lower during the Asian session on Wednesday and moves away from over a two-week high, around the 1.2870-1.2875 region touched the previous day. The downside, however, remains cushioned as traders keenly await the release of the latest consumer inflation figures from the UK and the US.

The UK CPI will play a key role in influencing the Bank of England's (BoE) monetary policy decision and drive the British Pound (GBP). Apart from this, the crucial US CPI report will be scrutinized for cues about the Federal Reserve's (Fed) rate cut path, which, in turn, should provide some meaningful impetus to the US Dollar (USD) and help in determining the next leg of a directional move for the GBP/USD pair. Read more...

GBP/USD buoyed by soft US PPI despite UK unemployment spike

GBP/USD rallied into a two-week high on Tuesday, rising to a session peak of 1.2873 after market sentiment found the buy button. US Producer Price Index (PPI) inflation cooled more than expected, prompting a rush of bets into a higher pace of rate cuts from the Federal Reserve (Fed) in September, while Cable traders shrugged off a multi-year peak in UK unemployment claims.

Consumer Price Index (CPI) inflation figures are due on Wednesday on both sides of the Atlantic. Core UK CPI inflation is expected to tick down to 3.4% YoY in July from 3.5%. On US side, markets are banking on a continued cool-off in US inflation figures, with core US CPI for the year ended in July forecast to ease to 3.2% from the previous 3.3%. Read more...

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD bounces toward 1.1750 as US Dollar loses strength

EUR/USD returned to the 1.1750 price zone in the American session on Friday, despite falling Wall Street, which indicates risk aversion. Trading conditions remain thin following the New Year holiday and ahead of the weekend, with the focus shifting to US employment and European data scheduled for next week.

GBP/USD nears 1.3500, holds within familiar levels

After testing 1.3400 on the last day of 2025, GBP/USD managed to stage a rebound. Nevertheless, the pair finds it difficult to gather momentum and trades with modest intraday gains at around 1.3490 as market participants remain in holiday mood.

Gold trims intraday gains, approaches $4,300

Gold retreated sharply from the $4,400 area and trades flat for the day in the $4,320 price zone. Choppy trading conditions exacerbated the intraday decline, although XAU/USD bearish case is out of the picture, considering growing expectations for a dovish Fed and persistent geopolitical tensions.

Cardano gains early New Year momentum, bulls target falling wedge breakout

Cardano kicks off the New Year on a positive note and is extending gains, trading above $0.36 at the time of writing on Friday. Improving on-chain and derivatives data point to growing bullish interest, while the technical outlook keeps an upside breakout in focus.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is. Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).