Pound Sterling Price News and Forecast: Flat near 1.3450 as softer US CPI revives Fed cut bets

💡 DMK Insight

The GBP’s slight dip against the USD signals underlying volatility as traders react to US inflation data. With GBP/USD hovering around 1.3450, the market is weighing the implications of potential Fed policy easing in 2026. This could lead to a stronger dollar if inflation pressures persist, which might push GBP/USD lower. Traders should keep an eye on the 1.3400 support level; a break below could trigger further selling. Conversely, if the pound manages to hold above this level, it might indicate resilience against a stronger dollar. It’s also worth noting that the current sentiment could shift quickly based on upcoming economic indicators, especially from the UK. If inflation data continues to show signs of easing, the pound could regain some strength. Watch for any comments from the Bank of England that might influence GBP sentiment, as they could provide clues about future monetary policy adjustments.