Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

The GBP/USD currency pair edged higher on Wednesday, while rebounding from a two-week low of 1.2688, ahead of the outcome of the Federal Reserve’s two-day policy meeting and the release of US CPI inflation figures for May.

The Fed is widely expected to leave its federal funds rate target range without change at a 23-year high of 5.25%-5.50% for the seventh straight policy meeting in June.

Therefore, the focus will likely be on the central bank’s updated economic projections along with Fed Chair Jerome Powell’s press conference for clues over the timing of potential rate cuts.

Markets are now pricing in about a 56% chance of a Fed rate cut occurring in September, compared with a 78% chance a week ago, according to the CME FedWatch tool.

A few hours before the Fed’s decision, market players will have the opportunity to look into the latest US CPI data.

Annual headline consumer inflation in the United States probably steadied at 3.4% in May, according to market consensus.

Annual core CPI inflation probably eased to 3.5% in May from 3.6% in April – a three-year low.

Meanwhile, in other macro data, the British economy registered zero growth in April from a month ago, following a 0.4% expansion in March. Declines in industrial production and construction activity offset an expansion in services.

Currency Pair Performance

As of 9:23 GMT on Wednesday the GBP/USD currency pair was edging up 0.12% to trade at 1.2755.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Natural gas declines ahead of bearish inventories dataNatural gas declines ahead of bearish inventories data Natural gas fell in the early U.S. session on speculations that the Energy Information Administration will report on Tuesday a larger than the average rise in U.S. inventories in the week ended October 11. The fuel traded mostly higher […]
  • Forex Market: AUD/NZD daily trading outlookForex Market: AUD/NZD daily trading outlook Yesterday’s trade saw AUD/NZD within the range of 1.0573-1.0662. The pair closed at 1.0586, shedding 0.09% on a daily basis, while extending the loss from last Thursday. It has been the 11th drop in the past twenty trading days. The daily low […]
  • US dollar sunk against Japanese yenUS dollar sunk against Japanese yen USD/JPY pair decreased in value during Thursday trade session, as Japanese bond yields reached one year highs and data showed that China’s manufacturing sector shrank for the first time in seven months during May.The pair fell to 101.42 […]
  • Forex Market: GBP/USD remains mostly stable despite FX market jitters over Turkey, speculators reduce GBP/USD longsForex Market: GBP/USD remains mostly stable despite FX market jitters over Turkey, speculators reduce GBP/USD longs Having touched a one-week low in Asia, GBP/USD remained mostly stable during Monday's European session, as Forex market jitters resulting from Turkey's surprise decision had insignificant effect on the Sterling.Meanwhile, the latest […]
  • Euro Area CPI inflation accelerates to 2% in OctoberEuro Area CPI inflation accelerates to 2% in October Annual consumer price inflation in the Euro Area has picked up to 2% in October from 1.7% in September, preliminary data by Eurostat showed.September's rate has been the lowest since April 2021.Market consensus had pointed to a lesser […]
  • EUR/NZD slips from 40 1/2-month peak as RBNZ keeps OCR intactEUR/NZD slips from 40 1/2-month peak as RBNZ keeps OCR intact The New Zealand Dollar firmed against the Euro on Wednesday after the Reserve Bank of New Zealand left its official cash rate without change at 5.5% during its August meeting and said it did not expect to begin rate cuts until the first […]