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Pound rises as softer US inflation keeps the dollar on the back foot

GBP/USD held around 1.3400 for the second straight day after US CPI eased to 3.5% year over year in June.

Reported · Written up by our desk · Major Pairs

FXStreet reports GBP/USD rose for a second consecutive day in Wednesday Asian trade, hovering near 1.3400 as the US dollar stayed under pressure.

The move followed softer than expected US inflation data, with June CPI easing to 3.5% year over year from 4.2% in May and also coming below the 3.8% market consensus, while headline CPI declined 0.4% month over month.

FXStreet said the dollar's downside could be limited by renewed safe haven demand as US and Iran tensions reemerged, with Hormuz-related concerns pushing up oil prices and keeping inflation worries in focus.

FXStreet also noted markets are pricing about a 50% chance of a Fed rate hike in September, while investors increasingly look for aggressive Bank of England rate moves, including two hikes in 2026 with a September increase fully priced.

Latest closeGBP/USD 1.339 ▲0.0%

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