GBP/USD Eyes Fed Signal as PCE Data Looms Wednesday

Sterling-dollar flows remain tentative heading into Wednesday's PCE Price Index release, the next major data point for Federal Reserve policy direction. Markets are parsing consensus expectations for headline and core inflation, alongside personal income and spending figures, all of which feed directly into rate-path speculation.

Since minutes from the last FOMC meeting leaned dovish, the dollar has struggled to build sustained strength, giving GBP/USD room to hold its recent footing. A softer-than-expected PCE print could extend dollar weakness and lift Cable further, while a hot reading risks reviving hawkish repricing and pressuring the pair lower.

With no fresh UK-specific catalysts on the calendar, GBP/USD direction into midweek is effectively being dictated by the US inflation narrative rather than domestic drivers.