The Pound Sterling holds firm within familiar levels after the US inflation report was aligned with estimates, a relief for the Federal Reserve, which is laser-focussed on tackling higher prices.
The GBP/USD trades at around 1.3500 after reaching a high of 1.3546
GBP/USD steadies after inline US inflation data; traders await UK GDP US inflation on the consumer front in July was in line with estimates, showing a deceleration from 3.6% to 3-5% on a yearly basis. Core inflation dipped as well to 2.5% YoY from 2.6%. The data triggered a reaction in the bond markets.
Now investors expect the Fed to hold rates unchanged at the September meeting, with odds at 60%, while the odds of a 25-basis-point rise stand at nearly 40%, according to Prime Terminal data. For the December meeting, the chances for a Fed rate hike are 73%, though there are three inflation reports left, ahead of the December 9 meeting. Although the report is positive, geopolitics continued to play its role.