GBP/USD Today: Pound Sterling Flat vs. US Dollar Following US Inflation Print

December 12, 2024 - Written by James Fuller

STORY LINK GBP/USD Today: Pound Sterling Flat vs. US Dollar Following US Inflation Print

The Pound US Dollar exchange rate treaded water on Wednesday following the release of the US’s latest consumer price index (CPI).

On Wednesday, the US Dollar (USD) fluctuated broadly against other major currencies, gaining ground against its riskier counterparts due to cautious market sentiment, however, was mostly subdued elsewhere.

The ‘Greenback’ was left mostly unchanged following the release of the latest US consumer price index (CPI), which matched market expectations and indicated a slight uptick in US inflation.

The core inflation rate remained steady at 3.3%, while the headline inflation rate increased from 2.6% to 2.7%, as anticipated.

As the CPI data aligned closely with initial forecasts, the US Dollar's response was muted, with limited movement following the announcement.

Pound (GBP) Subdued amid Data Lull

During the mid-week period, the Pound (GBP) failed to capture much investor attention, largely because there were no major UK data releases to influence trading decisions.

Without new economic insights, Sterling lacked a clear path forward, a problem that has persisted throughout the week.

On Wednesday, the situation was further complicated by the prevailing market sentiment.

The Pound's heightened sensitivity to risk made it especially susceptible to the cautious atmosphere that dominated the day.

GBP/USD Exchange Rate Forecast: US Data in the Spotlight

Looking ahead to Thursday, the main driver of movement for the Pound-US Dollar exchange rate will likely be several key economic releases from the US.

The US is set to publish its latest Producer Price Index (PPI) data and initial jobless claims. If the PPI data shows an increase and the jobless claims decline as anticipated, the USD could gain strength.

Turning to the Pound, the UK economic calendar is notably quiet on Thursday, with no major data releases planned.

This lack of fresh economic indicators means that Sterling is likely to trade without a clear direction once more, making it susceptible to external market influences and sentiment.

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TAGS: Pound Dollar Forecasts