GBP Holds Ground as US Inflation Figures Trim Rate Hike Odds

The Pound Sterling (GBP) maintained its gains on Wednesday as the US Dollar (USD) came under mild pressure after the release of the latest US inflation figures.

The data showed that the Consumer Price Index (CPI) rose 0.1% in July, following a 0.4% decline in June, with the annual rate easing to 3.4% from 3.5%. Core CPI increased 0.2% month-over-month, while the yearly rate slowed to 2.5% from 2.6%.

The US Dollar Index (DXY) traded around 99.67, down 0.15% on the day, as US Treasury yields edged lower across the curve. The probability of a Federal Reserve (Fed) rate hike at the September meeting has fallen to 38%, according to the CME FedWatch Tool.