GBP Strengthens on Weaker US Data and Reduced Rate Hike Bets

The British Pound (GBP) is on an upward trend against the US Dollar (USD), rising by 0.2% to near 1.3557 during the European trading session on Wednesday.

This increase comes as investors scale back Federal Reserve interest rate hike bets due to weak United States economic data for August, putting selling pressure on the US dollar.

Meanwhile, traders await the publication of the Federal Open Market Committee (FOMC) minutes from the July policy meeting at 18:00 GMT.

The GBP/USD pair has been trading within a narrow range since Monday's release of UK inflation data, which showed that headline Consumer Price Index (CPI) accelerated to 2.9% year-over-year in July, as expected, from 2.6% the previous month.