GBP Edges Higher to Near 1.35 as US Inflation Report Cools Rate Hike Bets

The British Pound has seen modest gains in early Asian trading hours on Thursday, pushing it close to the 1.3500 mark against the US Dollar.

This comes after a tame reading of the US inflation report, which reduced the possibility of an interest rate hike from the Federal Reserve next month.

The July Consumer Price Index (CPI) rose by 3.4% year-over-year, while core CPI increased by 2.5%, both in line with expectations.

Traders have cut their probability for a September rate hike to 40%, according to the CME FedWatch tool, as officials will get August CPI and jobs reports before their meeting.