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GBP/USD edges toward 1.3500 ahead of UK GDP data

USD softness after tame US inflation pushed the September Fed hike odds to 40% before investors focus on UK Q2 GDP and later PPI data.

Reported · Written up by our desk · Major Pairs

GBP/USD rose modestly in early Asian trading on Thursday, moving toward 1.3500 as the US dollar weakened against the pound, according to FXStreet.

The dollar tone softened after US inflation came in in line with expectations, reducing the likelihood of a Federal Reserve rate hike next month. US CPI increased 3.4% year over year in July, with core CPI at 2.5% year over year, while monthly headline and core readings were 0.1% and 0.2% respectively.

Traders are now watching preliminary UK second-quarter GDP data expected later on Thursday, alongside additional UK releases, including monthly trade and industrial production. FXStreet also noted UK growth expectations for Q2 of 0.4% quarter over quarter, after a 0.6% increase in Q1.

In parallel, the market is set to digest US producer price index data later on Thursday. FXStreet added that traders have cut the probability of a September rate hike, with odds at 40% according to the CME FedWatch tool.

Latest closeGBP/USD 1.349 ▼0.1%

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