GBP Holds Ground as Markets Eye US CPI and UK GDP Data

The British Pound has been holding steady around 1.3500 against the US Dollar during Tuesday's Asian session, extending its two-day advance.

This comes as markets have scaled back expectations for a Bank of England rate hike by year-end, despite the GBP outperforming several major peers.

Investors are now focused on upcoming US Consumer Price Index and UK Q2/June GDP data releases, which will guide policy expectations.

The British Pound has outpaced several major counterparts this week, with its strongest relative performance recorded against the Japanese Yen.

According to strategists at Rabobank, 'the market is currently pricing in a reduced expectation of a rate hike by the end of the year.'