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British pound holds gains versus dollar as US CPI nears

GBP/USD was around 1.3500, while markets await US July CPI on Wednesday and UK June GDP on Thursday for fresh direction.

Reported · Written up by our desk · Major Pairs

The British pound held onto two-day gains against the US dollar, trading around 1.3500 during Tuesday’s Asian session, according to FXStreet.

FXStreet said the GBP remained supported even as financial markets have priced out near-term expectations for a Bank of England interest rate hike, with the US Dollar Index steady at roughly 99.80.

Near-term catalysts include UK Q2 preliminary GDP and June data due Thursday, with expectations for 0.4% growth in the April to June period versus 0.6% previously, and a 0.1% contraction on a monthly basis.

In the US, investors are looking to July CPI due Wednesday, with FXStreet citing Brown Brothers Harriman’s Elias Haddad expecting headline CPI to rise 0.1% month over month versus -0.4% in June, and core CPI to rise 0.2% month over month versus 0.0% in June, a read that could influence Federal Reserve rate expectations.

Latest closeDollar index 101.29 ▲0.2%

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