US CPI matching estimates and hitting a three-year high weighed on the USD, boosting the Pound Sterling by 0.19%.
The British Pound traded near 1.3400 against the US Dollar after US inflation data matched expectations, pushing the GBP/USD pair up by over 0.19%. The headline Consumer Price Index reached a three-year high, pressuring the USD.
Earlier, the pair had dipped to daily lows before rebounding. The US CPI print aligned with forecasts, though the elevated inflation reading added to concerns about persistent price pressures.
Markets are assessing the implications for Federal Reserve policy, with the data reinforcing expectations of a cautious approach to interest rate adjustments.