Some buyers are drawn to the GBP/USD at around 1.3460 in the early European session on Wednesday.
As anticipated, UK CPI inflation decreased to 3.4% YoY in May.
Later on Wednesday, the Fed will make its interest rate decision; no change in the rate is anticipated.
Following the UK Consumer Price Index (CPI) inflation report, the GBP/USD pair gains strength near 1.3460 in early European trading hours on Wednesday. The focus will then turn to the US Federal Reserve's (Fed) interest rate decision later on Wednesday.
According to data issued on Wednesday by the UK's Office for National Statistics, the headline CPI increased 3.4% year over year in May after rising 3.5% in April. This reading supported the consensus of the market. The Core CPI, which does not include the volatile prices of food and energy, increased 3.5% YoY in May as opposed to 3.8% earlier, which was less than the 3.6% forecast.
In the meantime, the UK CPI inflation rate decreased from 1.2% in April to 0.2% in May. The reading was expected to rise by 0.2% by the markets. The mixed UK CPI inflation numbers immediately caused the pound sterling to gain ground.
Regarding the USD, the Fed is anticipated to maintain borrowing costs during their June meeting on Wednesday. According to Reuters, traders now believe there is a roughly 80% chance that the Fed will drop rates in September and then again in October. The FOMC Press Conference will provide traders with additional guidance. It seems expected that the greenback will continue to decline if the Fed issues a dovish hold.
As anticipated, UK CPI inflation decreased to 3.4% YoY in May.
Later on Wednesday, the Fed will make its interest rate decision; no change in the rate is anticipated.
Following the UK Consumer Price Index (CPI) inflation report, the GBP/USD pair gains strength near 1.3460 in early European trading hours on Wednesday. The focus will then turn to the US Federal Reserve's (Fed) interest rate decision later on Wednesday.
According to data issued on Wednesday by the UK's Office for National Statistics, the headline CPI increased 3.4% year over year in May after rising 3.5% in April. This reading supported the consensus of the market. The Core CPI, which does not include the volatile prices of food and energy, increased 3.5% YoY in May as opposed to 3.8% earlier, which was less than the 3.6% forecast.
In the meantime, the UK CPI inflation rate decreased from 1.2% in April to 0.2% in May. The reading was expected to rise by 0.2% by the markets. The mixed UK CPI inflation numbers immediately caused the pound sterling to gain ground.
Regarding the USD, the Fed is anticipated to maintain borrowing costs during their June meeting on Wednesday. According to Reuters, traders now believe there is a roughly 80% chance that the Fed will drop rates in September and then again in October. The FOMC Press Conference will provide traders with additional guidance. It seems expected that the greenback will continue to decline if the Fed issues a dovish hold.
