GBP Strengthens Against USD Ahead of Key Inflation Data Releases
The British Pound (GBP) has strengthened against the US Dollar (USD), rising by 0.15% to 1.3560 in the North American session, with no clear catalyst behind the move.
The conflict in the Middle East continues to escalate, and traders are bracing for the release of US inflation data on Friday, including the Consumer Price Index (CPI).
Oil prices have surged, with West Texas Intermediate (WTI) rising over 2% to above $96.00, but the positive correlation between WTI and the USD has broken, as the Dollar weakens.
The US Dollar Index (DXY), which measures the performance of the buck versus six major currencies, is down 0.19% at 98.64, while money markets indicate investors expect a quarter-point rate hike at the September 15-16 Federal Reserve meeting, with odds standing at 63%.