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British pound slips as oil spike revives inflation concerns

GBP/USD fell 0.2% to about 1.3450, while WTI rose more than 1.5% to $80.78 a barrel amid renewed Middle East tensions.

Reported · Written up by our desk · Major Pairs

Housingwire reports that the British pound weakened in the North American session for a second straight day, edging down 0.2% versus the U.S. dollar to trade around 1.3450 after a brief push near 1.3480.

The move was linked to geopolitical tensions that fueled a sharp rise in oil prices, with WTI gaining more than 1.5% to $80.78 per barrel, a dynamic that is raising fears of a possible reacceleration in inflation.

In the U.S., University of Michigan data showed consumer sentiment improved in July, and one year inflation expectations eased from 4.6% to 4.2%, while five year expectations held at 3.3%. The report also notes money markets had priced in a nearly 61% chance of a Fed rate hike at the October 28 meeting.

FXStreet also cited that oil is up about 13% so far this month and that upcoming event risk includes U.S. jobs data and flash PMIs, alongside the Fed blackout ahead of the July 29 policy meeting.

Latest closeWTI crude $79.00 ▼0.8%

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