GBP Rises as UK GDP Data Trumps US Inflation Report

The Pound Sterling (GBP) experienced a slight gain against the US Dollar (USD) on Friday, rising by 0.10%, as the latest US consumer inflation report came in line with forecasts.

Although money markets increased the odds of a Federal Reserve (Fed) rate hike next week, traders reacted to the initial reaction by fading it.

The GBP/USD pair initially dipped to around 1.3470 on the Consumer Price Index (CPI) release but rebounded and traded back at 1.3524 at the time of writing.

The strong UK monthly Gross Domestic Product (GDP) data for July, reported by the United Kingdom (UK) Office for National Statistics (ONS), attracted significant bids against its peers, with the GBP/USD pair rising to near 1.3518.