Pound Rebounds on Strong UK Growth Ahead of BoE Decision

The British Pound has shaken off the initial impact of the US Consumer Price Index (CPI) release, which came in line with forecasts. The CPI rose 0.4% month-over-month and 3.4% year-over-year.

Although the numbers were as expected, the market's initial reaction was to dollar strength. However, traders have since faded this move, and most G8 FX currencies have recovered.

The Pound Sterling has climbed against the US Dollar, up 0.10%, trading at around 1.3524. This rebound follows a dip to around 1.3470 on the CPI release.

UK GDP figures revealed that the economy grew at its fastest pace in 18 months in July, by 1.6% year-over-year, above estimates of 1.2%. The strong growth has helped steady the Pound ahead of the Bank of England's (BoE) decision next week.