Home›Forex›Major Pairs›GBP/USD rebounds near 1.3385 despite cooler UK inflati…

GBP/USD rebounds near 1.3385 despite cooler UK inflation data

UK CPI slowed to 2.6% year over year in June, while core inflation ticked up to 2.6%, adding mixed signals for Bank of England rate expectations.

Reported · Written up by our desk · Major Pairs

GBP/USD nudged higher to around 1.3385 during Asian trading on Thursday, even as traders weighed mixed UK inflation signals and rising tensions in the Middle East, according to FXStreet.

The UK headline Consumer Price Index (CPI) eased to 2.6% year over year in June, the lowest since March 2025 and below the 2.7% expected, while core CPI rose 2.6% year over year, unchanged from the prior reading but above the forecast of 2.5%. On a monthly basis, CPI fell 0.1% in June, down from 0.2% in May.

Markets are also focused on UK Retail Sales due later on Friday, while the Bank of England is expected to keep its benchmark rate at 3.75% next week as it assesses the impact of the Middle East conflict.

FXStreet also noted that escalating conflict risk could support safe haven demand for the US dollar versus the pound in the near term, alongside the prospect that traders are still pricing in one or two quarter-point BoE rate hikes by the end of 2026.

Latest closeGBP/USD 1.338 ▼0.4%

More like this

Sources