GBP/USD Pair Pressured by US Inflation Data and Hawkish Rate Hopes

The U.S. dollar index has been steadily rising, but the pound sterling remains under pressure against the greenback.

In the Asian session on Thursday, the GBP/USD pair traded below 1.3600 and near its week's lows, reflecting a weak performance in the market.

This is largely due to U.S. inflation data, which showed that the Personal Consumption Expenditures (PCE) price index rose 3.7% year over year in July, slightly above expectations of 3.6%. This maintains pressure on the Federal Reserve to continue tightening monetary policy before the end of the year.

The pound's recent pullback has made it more vulnerable to a further decline, especially with U.S. interest-rate expectations still bearing down on the pair.