The GBP/USD pair slipped to the lower end of its trading range as UK inflation data failed to generate enthusiasm among investors. The latest CPI figures showed an unexpected rise, but the data fell short of altering the market’s outlook on the Bank of England’s policy trajectory. With inflation persistently high, the pound initially saw modest gains, but these quickly faded as traders assessed the broader economic implications.
Analysts point to cautious sentiment driven by expectations that the BoE will hold rates steady rather than adopt a more aggressive stance. Meanwhile, the dollar strengthened amid safe-haven flows, adding further pressure on the pound. The disappointing reaction underscores the market’s focus on sustained economic momentum rather than short-term data spikes, keeping GBP/USD on the back foot.
