GBP/USD Rebounds Toward 1.3450 Ahead of UK CPI Release, Fed Rate Decision in Focus

GBP/USD Rebounds Towards 1.3450 After Previous Session Decline; UK CPI and Fed Rate Decisions in Focus

The GBP/USD currency pair is trading slightly higher near 1.3440 during the Asian morning session on Wednesday, recovering after falling more than 1% the previous day. Market attention is firmly fixed on the upcoming release of the UK Consumer Price Index (CPI) data for May, expected to reveal easing inflationary pressures.

UK Inflation and Bank of England Rate Outlook

The Bank of England (BoE) is anticipated to maintain interest rates steady at 4.25% during its Thursday meeting, supporting a cautious outlook for the British Pound. Inflation data will be critical for gauging the BoE’s future monetary policy path.

US Federal Reserve Rate Decision and Market Sentiment

In the US, the Federal Reserve (Fed) is widely expected to keep the interest rate at 4.5% in its June meeting later Wednesday. According to Reuters, markets price in about an 80% probability of a Fed rate cut in September, with a follow-up reduction possible in October.

Traders will closely monitor the Federal Open Market Committee (FOMC) statement for forward guidance amid ongoing tariff uncertainties and escalating Middle East geopolitical tensions. The heightened safe-haven demand has contributed to the US Dollar’s recent strength.

Suggested Internal Links (Tredu.com):

• How UK CPI Influences GBP/USD Movements
• Federal Reserve Rate Decision and Its Impact on Forex
• Understanding Safe-Haven Currencies Amid Geopolitical Tensions
• GBP/USD Technical Analysis and Forecast