Pound Retreats as US Producer-Price Data Boosts Fed Hike Expectations

The Pound to Dollar exchange rate retreated on Thursday afternoon after stronger US producer-price data boosted expectations of a Federal Reserve rate hike next week.

The GBP/USD pair traded above 1.3550 earlier in the session but slipped back towards 1.3530, leaving it down around 0.15% on the day.

Despite renewed pressure across global bond and equity markets, Sterling remained relatively resilient due to expectations of further Bank of England tightening providing some underlying support.

The US Dollar initially struggled to benefit from the deterioration in risk appetite but recovered some ground after the stronger US producer-price data increased expectations of a Federal Reserve rate hike next week.