Pound Tumbles as Markets Eye Inflation Data and Fed Rate Decision

The British Pound has retreated against the US Dollar in early Asian trading on Wednesday as markets await two key central bank events.

The GBP/USD pair has slipped to around 1.3470, with traders positioning ahead of the UK August Consumer Price Index (CPI) release and the Federal Reserve's interest rate decision.

Investors expect a 25 basis point increase in US interest rates as energy costs drive inflation higher.

The Bank of England is forecast to keep its policy rate unchanged at 3.75% this week, but some analysts anticipate a rate hike to 4% by year-end.