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Pound steadies near 1.35 as traders await US CPI and UK GDP
GBP/USD was last around 1.3508, while money markets put September Fed hike odds at 52% and WTI slid from about $84.69 to $82.50 on a Bloomberg Pakistan-Iran headline.
The British pound held steady versus the US dollar on Tuesday after softer-than-expected US jobs data, with GBP/USD trading near 1.3508, little changed at the time of writing, according to FXStreet.
Attention is shifting to upcoming inflation and growth releases, including US Consumer Price Index data on Wednesday and UK GDP data on Thursday. FXStreet cited market expectations for headline CPI at 3.4% year over year and core CPI at 2.5%, with the UK’s preliminary Q2 GDP forecast to rise 1.1% year over year.
The report also noted that traders are monitoring the US PPI and jobless claims later in the week, after a disappointing July nonfarm payrolls release. In the UK, FXStreet said market participants were bracing for GDP slowdown projections on both a yearly and quarterly basis.
Money markets continued to adjust expectations for a September Fed move, with odds for a 25 basis point rate hike at 52% based on Prime Terminal data cited by FXStreet. The outlet also said analysts Reuters quoted did not expect the UK election of Andy Burnham as prime minister to materially affect the currency near term, with traders looking ahead to a UK budget scheduled for late October.
Latest closeGBP/USD 1.351 ▲0.4%