GBP Strengthens Above 1.3550 as Markets Eye US PPI Inflation Data

The British Pound (GBP) has gained strength against the US Dollar (USD), reaching levels above 1.3550 in early European trading on Thursday.

This gain can be attributed to a weaker USD, as markets await the release of the US Producer Price Index (PPI) data later in the day.

Economists expect the headline PPI inflation to rise 5.3% YoY in August from 4.7% in July, while core PPI inflation is projected to increase to 4.6% YoY in August from 4.2% in July.

If these reports show hotter-than-expected outcomes, it could reinforce Federal Reserve rate hike bets and lift the USD against the GBP in the near term.