GBP/USD Pressured as US CPI at 3.7% Fuels Fed Hawkish Bets
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Dollar demand is being underpinned by persistent US inflation running at 3.7%, a reading that continues to feed hawkish repricing of Fed rate-path expectations via FedWatch probabilities.
For GBP/USD, this dynamic matters directly: as long as US rate differentials favour the greenback, cable faces a structural headwind, with rallies more likely to attract fresh dollar buyers than sustained follow-through from sterling bulls.
Traders should watch upcoming US data releases closely, since any deviation from the current inflation trajectory could quickly reprice Fed expectations and shift the near-term balance for GBP/USD.