Sterling Steadies Ahead of US CPI and BoE Rate Bets
The British pound traded flat against the US dollar at around 1.3510 on Friday morning in Asian trading, as markets waited for the release of the US August Consumer Price Index (CPI) later that day.
Earlier this week, the Bureau of Labor Statistics reported a higher-than-expected rise in the Producer Price Index (PPI), which increased 5.4% year-on-year in August, compared to 4.8% in July.
The Bank of England's rate expectations remained in focus, with Governor Andrew Bailey dismissing the idea that a rate hike is inevitable, but markets are still pricing in one quarter-point increase by year-end and two more by 2027.
Technically, the GBP/USD pair held above its 100-day Simple Moving Average (SMA) at 1.3445, with resistance near 1.3560 and support at 1.3465.