- GBP/USD trades marginally higher on the day above 1.3500.
- The US Dollar struggles to outperform its rivals after inflation data.
- CPI and core CPI both rose at a softer pace than expected in May.
Following Tuesday’s sharp decline, GBP/USD stages a rebound and trades above 1.3500 in the American session on Wednesday. At the time of press, the pair was up 0.23% on the day at 1.3528.
British Pound PRICE Today
The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.42% | -0.21% | -0.14% | -0.06% | 0.00% | 0.10% | -0.34% | |
| EUR | 0.42% | 0.20% | 0.25% | 0.34% | 0.42% | 0.47% | 0.07% | |
| GBP | 0.21% | -0.20% | 0.06% | 0.18% | 0.24% | 0.28% | -0.14% | |
| JPY | 0.14% | -0.25% | -0.06% | 0.00% | 0.17% | 0.23% | -0.22% | |
| CAD | 0.06% | -0.34% | -0.18% | 0.00% | 0.10% | 0.12% | -0.31% | |
| AUD | -0.01% | -0.42% | -0.24% | -0.17% | -0.10% | 0.04% | -0.36% | |
| NZD | -0.10% | -0.47% | -0.28% | -0.23% | -0.12% | -0.04% | -0.41% | |
| CHF | 0.34% | -0.07% | 0.14% | 0.22% | 0.31% | 0.36% | 0.41% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
On Tuesday, GBP/USD came under bearish pressure after the disappointing labor market data revived expectations for the Bank of England to lower the policy rate twice more this year. The renewed US Dollar (USD) weakness, however, helped the pair shake off the bearish pressure midweek.
The data published by the US Bureau of Labor Statistics showed that the Consumer Price Index (CPI) rose 0.1% on a monthly basis in May. This reading followed the 0.2% increase recorded in April and came in below the market expectation of 0.2%. Similarly, the core CPI, which excludes volatile food and energy prices, increased 0.1% in this period, compared to analysts’ estimate of 0.3%.
The USD Index turned south following the May inflation data and was last seen losing 0.3% on the day at 98.75. In the meantime, the probability of the Federal Reserve leaving the policy rate unchanged in September declined toward 30% after the CPI data, from nearly 40% on Tuesday, as per the CME FedWatch Tool.
Later in the American session, investors will pay close attention to the outcome of the 10-year US Treasury note auction.
