GBP Falls to Five-Day Low as Fed Hike Bets Revive
The British Pound (GBP) experienced a decline against the US Dollar (USD) on Wednesday as traders reacted to the latest United States Personal Consumption Expenditures (PCE) Price Index data. The GBP/USD pair dropped below 1.3600, reaching a five-day low after touching a high near 1.3651.
The decline was attributed to elevated US inflation rates, which increased the chances of a rate hike by the Federal Reserve towards the end of the year. This development revived bets on a Fed hike, causing the USD to stage a recovery and push the GBP/USD pair down.
The pair's price currently stands around 1.3603, down roughly 0.33% on the day. The British Pound pares its gains against the US Dollar as traders await the release of July's US Personal Consumption Expenditures (PCE) Price Index data.