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Pound rises vs dollar after softer US inflation data

GBP/USD was up 0.42%, with US core PCE running at 3.0% year over year versus 3.3% expected.

Reported · Written up by our desk · Major Pairs

The British pound gained versus the US dollar on Wednesday, rising 0.42% after US inflation data came in below expectations, FXStreet said. The move kept GBP/USD near spot levels around 1.3280 and was tied to investors scaling back expectations for near term Fed tightening.

FXStreet pointed to comments from New York Fed President Williams, which suggested policymakers are not in a rush to tighten monetary policy. The soft inflation prints also followed hawkish remarks from several Fed officials, including St. Louis Fed Musalem, Chicago Fed Goolsbee, and Fed Governor Barr ahead of the core PCE Price Index release.

According to FXStreet, US core PCE in August was 3.0% year over year, below the 3.3% estimate and unchanged from July. Headline PCE stood at 3.4% year over year, unchanged from the prior print and below the 3.7% forecast, with additional data showing US second quarter growth of 2.2% and private payroll gains of over 90,000 jobs in September, above expectations.

Latest closeGBP/USD 1.325 ▲0.1%

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