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Pound slips under 1.3650 as traders look to US PCE data

GBP/USD traded near 1.3625, with investors braced for US July core PCE expected to rise 3.3% year over year.

Reported · Written up by our desk · Major Pairs

The British pound edged lower against the US dollar, with GBP/USD falling to around 1.3625 in early European trading Wednesday, after slipping below the 1.3650 level.

FXStreet reports that the USD firmed as traders turned cautious ahead of the release of the US July Personal Consumption Expenditures (PCE) Price Index, a key inflation read-through for rate expectations.

The outlet notes that US long-term borrowing costs have been in focus, with the US Treasury expected to double bond buyback operations to at least $4 billion per operation, from a current $2 billion maximum, after earlier selling pressure on the dollar.

Traders are also watching the expected path for inflation, with economists forecasting Core PCE, excluding food and energy, will rise 3.3% year over year in July, alongside commentary risk from Fed Chair Kevin Warsh at Jackson Hole this Friday.

Latest closeGBP/USD 1.354 ▲0.3%

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