GBPUSD rebounds from 3-week low on hot UK inflation data

The British pound rebounded on Wednesday following a consistent decline since the start of the month which landed the GBPUS pair to a three week low. The pound was boosted by UK CPI data that climbed 3.6% on the year in June after reporting a 3.4% growth in May. The market forecast was for a 3.4% increase and the reading moves away from the Bank of Englands (BoE) 2% target which could dial back a forward looking rate cut by BoE. Core CPI (excluding volatile food and energy items) rose 3.7% year-over-year in the same period, as against a 3.5% uptick in May. Meanwhile, the monthly UK CPI inflation ticked up to 0.3% in June from 0.2% in May. However, dollar index pacing ahead of 98 mark could limit some gains in the counter. Currently, GBPUSD is quoting at $1.3413, up 0.12% on the day. Meanwhile on the NSE, GBPINR futures pair is seen trading at 115.19, down 0.32% on the day.

 

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