GBP Surges on Softer US Inflation Figures, Odds Shift to Fed Hold

The British Pound (GBP) has gained solid ground against the US Dollar (USD), rising by 0.42% to reach spot prices near $1.3280 on Wednesday, following the release of US inflation figures that fell short of estimates.

The US Core Personal Consumption Expenditures (PCE) Price Index came in at 3% YoY, below forecasts of 3.3%, while headline PCE stood at 3.4% YoY, unchanged from July's print and also below expectations for a 3.7% jump.

The data led to a shift in money markets, with odds now favoring a hold for the October 28 Federal Reserve meeting, rather than a rate hike, as revealed by Prime Terminal. The US Dollar Index (DXY) has fallen 0.08% to 101.29.