Pound Edges Higher as Markets Await US Inflation Data

The British pound has edged higher against the US dollar in early trading on Monday, as currency markets anticipate the latest US Consumer Price Index (CPI) report.

As of the morning session, GBP/USD traded near 1.27, up 0.2% from the previous close.

The CPI data is crucial because it will influence the Federal Reserve's interest rate trajectory.

Economists polled by Reuters expect headline CPI to rise 0.3% month-over-month and core CPI to increase 0.3% monthly, keeping annual rates at 3.4% and 3.6%, respectively.