Pound Sterling trades with caution as US inflation takes centre stage
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The Pound Sterling wobbles around 1.3430 against the US Dollar ahead of the US-UK CPI data for June Investors expect US inflation to have accelerated, while the UK CPI is estimated to have risen steadily. Market sentiment remains jittery as trade tensions between the US and the EU persist. The Pound Sterling (GBP) trades cautiously against the US Dollar (USD) near a three-week low around 1.3430 on Tuesday. Investors brace for significant volatility in the GBP/USD pair as the United States (US) Consumer Price Index (CPI) data for June is scheduled to be published at 12:30 GMT. Ahead of the US inflation data, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades marginally lower from the three-week high around 98.00. Investors will pay attention to the US CPI data, as it will provide clarity about the impact of tariffs imposed by President Donald Trump on inflation . Federal Reserve (Fed) officials have been arguing in favor of keeping interest rates at their current levels until they get clarity about how much Trump’s tariff policies will impact prices, and the CPI release could offer some insights on the matter. Still, considering the timing of the announcement of reciprocal tariffs by US President Trump for 22 nations, notably Japan, South Korea, the European Union (EU), and its North American peers, the impact of tariffs will be majorly seen in August CPI figures. According to the estimates, the US headline inflation rose to 2.7% on year from 2.4% in May. The core CPI – which strips off volatile food and energy items – is expected to have grown by 3%, faster than the prior release of 2.8%. On month, both headline and the core CPI are seen rising by 0.3%. Daily digest market movers: Investors await UK…
Filed under: News - @ July 15, 2025 1:30 pm