Pound Tumbles Below 1.3650 as Markets Await Crucial US Inflation Data

The British pound traded slightly lower against the US dollar on Thursday, hovering below the 1.3650 mark as investors awaited the release of the US Personal Consumption Expenditures (PCE) price index.

This inflation gauge is a critical data point for the Federal Reserve's monetary policy decisions.

A hotter-than-expected reading could reinforce the case for a slower pace of rate cuts, supporting the US dollar and pressuring GBP/USD.

Conversely, a cooler print might fuel expectations for earlier easing, potentially lifting the pound.