GBP/USD Holds Range-Bound as Markets Digest UK Inflation and Fed Policy

The British pound is trading around 1.3455 against the US dollar, reflecting a cautious market mood.

The pair has been consolidating for the past few sessions due to investors' hesitation to place large bets ahead of key economic releases.

The UK's Consumer Price Index (CPI) data showed inflation easing to 3.2% year-on-year, down from 3.4% in the previous reading, which reinforced expectations that the Bank of England may begin cutting interest rates.

This has capped the pound's upside as investors anticipate a potential rate cut by the BoE.