GBP/USD Edges Lower Ahead of PCE Data Release
The British Pound edged lower against the US Dollar on Wednesday, trading below 1.3650 as markets turned cautious ahead of the US July Personal Consumption Expenditures (PCE) Price Index data release.
Economists expect inflationary pressures to remain sticky due to ongoing energy risks from the Middle East conflict, with Core PCE, excluding food and energy, estimated to rise 3.3% year-over-year in July.
US Treasury Secretary Scott Bessent's announcement last week that the US Department of the Treasury will double its bond buyback operations to at least $4 billion per operation has exerted some selling pressure on the USD.
However, the Greenback recovered some lost ground after CNBC reported that the department could use part of its cash balance to buy back longer-dated bonds, which helped steady long-term yields.