GBP Holds Steady near 1.3500 as US Inflation Meets Expectations

The Pound Sterling has maintained its position near the 1.3500 level following the release of US inflation data, which met expectations and provided some relief to the Federal Reserve's focus on tackling higher prices.

The GBP/USD pair has been trading steadily around this mark after reaching a high of 1.3546, as investors await UK GDP figures due out later in the day.

US inflation on the consumer front in July showed a deceleration from 3.6% to 3-5% on a yearly basis, with core inflation dipping to 2.5% YoY from 2.6%. This data triggered a reaction in the bond markets and has led investors to expect the Fed to hold rates unchanged at the September meeting.

However, geopolitical tensions continue to play a role, with negotiations between the US and Iran showing signs of stalling and Iranian military posturing in the Strait of Hormuz.