GBP Under Pressure as US Inflation and UK GDP Weigh on Sterling

The Pound-Dollar exchange rate rose on Wednesday by 0.2% as demand for the US Dollar was tempered by wider currency trends.

At the time of writing, GBP/USD was trading at around $1.3559, up from its opening levels.

However, analysts warn that the Pound may come under pressure if US inflation accelerates or weak UK GDP figures are released.

The US Dollar faced headwinds on Wednesday as continued strength in the Japanese Yen weighed on demand for the 'Greenback', with the Yen climbing to a seven-month high against the US Dollar due to expectations of a Bank of Japan rate hike.

The Pound was subdued against most of its other peers on Wednesday as surging energy prices revived domestic inflation anxieties, bolstering the case for the Bank of England to lift interest rates later in the year.