GBP Plunges Below 1.3600 as US Inflation Data Fuels Dollar Gains
The British Pound (GBP) dropped to weekly lows below 1.3600 against the US Dollar on Thursday, as the USD gained momentum following hot inflation data released on Wednesday.
According to Mitrade, the GBP/USD pair reached session lows at 1.3570 and is down by 0.5% from Wednesday's high in the mid-1.3600s.
The US Personal Consumption Expenditures (PCE) Price Index accelerated beyond expectations in July, with the yearly rate remaining steady at 3.7%, while core PCE inflation grew at a steady 3.3%, both well above the Federal Reserve's 2% target rate.
ING strategists believe that despite the pressure on the Fed to hike interest rates, they 'remain reasonably confident in our call for the Fed to hold on 16 September and, by extension, in a weaker dollar.'