The GBP/USD price surged on Friday, with the Pound Sterling rallying against the US Dollar by over 0.50%. This increase came despite higher-than-expected US inflation data on the producer front. The GBP/USD pair is currently trading at 1.2981 after bouncing back from daily lows of 1.2901.
The Pound Sterling reached an annual high near 1.2950 against the US Dollar in Friday’s New York session. This surge was fueled by softer-than-expected US Consumer Price Index data for June, which has raised expectations of rate cuts by the Federal Reserve. Traders are now anticipating the Fed to start reducing interest rates starting from the September meeting.
Meanwhile, the GBP/USD pair is hovering around the 1.2900 mark during the Asian session on Friday, slightly below the one-year peak it reached on Thursday. Despite some minor gains and losses, the pair remains within striking distance of the previous day’s high.
Overall, the Pound Sterling has seen significant gains against the US Dollar, driven by market expectations of potential rate cuts by the Federal Reserve. Traders will continue to monitor economic data and Fed announcements for further insights into the future direction of the GBP/USD pair.