GBP/USD extends the rally above 1.3550 ahead of UK monthly GDP data
The GBP/USD pair extends its upside to near 1.3580 during the Asian trading hours on Thursday. The cooler-than-expected US inflation data weighs on the US Dollar (USD) against the Pound Sterling (GBP).
The UK monthly Gross Domestic Product (GDP) for April and the US Producer Price Index (PPI) report will be in the spotlight later on Thursday.
Traders raise their bets that the US Federal Reserve (Fed) will deliver a rate cut by September. Some analysts expect the Fed will deliver more than one interest-rate cut this year.
This, in turn, exerts some selling pressure on the major pair.
Following the CPI report, traders have priced in 47 basis points (bps) of Fed easing by the end of the year, compared to about 42 bps before the CPI data, according to Bloomberg. While the Fed’s next move is fully priced in for October, traders increased expectations for a cut in September to around a 75% chance.
Source: FXStreet
