GBP Edges Higher on Softer Inflation Data, Fed Rate Hike Chances Dwindle

The British Pound (GBP) has edged higher to near 1.3650 against the US Dollar (USD), boosted by softer inflation data and a disappointing US jobs report.

These developments have cooled expectations of tighter Federal Reserve policy, with only a 36% chance of a rate hike in September, according to the CME FedWatch Tool.

The Bank of England is also expected to hold interest rates steady for the remainder of the year, despite some hawkish bets earlier this year.