GBP Bounces Back from US Inflation Report
The Pound Sterling (GBP) recovered from an initial decline against the US Dollar (USD) on Friday, following the release of the latest US inflation report. The GBP/USD pair briefly fell to around 1.3470 after the data release but rebounded to approximately 1.3524, gaining about 0.10% on the day.
The US Consumer Price Index (CPI) data showed a month-on-month increase of 0.4% in August and a year-on-year rise of 3.4%, both matching market expectations. Core CPI, which excludes food and energy, increased by 0.3% monthly, slightly above the forecasted 0.2%, while annual core inflation eased to 2.4% from 2.5% previously.
However, the stronger monthly core reading initially boosted the US Dollar, but the reaction quickly faded as major currencies recovered. The US Dollar Index remained near 99.00, marginally lower on the day.