The solana crypto price predictionGBP/USD pair continues to show resilience around the 1.3460 level during Wednesday's European trading session.
UK consumer price inflation moderated to 3.4% year-over-year in May, matching market expectations.
Market participants are eagerly awaiting the Federal Reserve's policy decision later today, with consensus pointing to unchanged rates.
The British Pound demonstrates continued strength against the US Dollar, trading near 1.3460 in early European hours. This comes after the latest inflation figures from the UK showed a modest cooling of price pressures, while attention now turns to the Federal Reserve's monetary policy announcement scheduled for later today.
According to data published by the UK Office for National Statistics, the headline Consumer Price Index (CPI) increased by 3.4% annually in May, down from April's 3.5% reading and precisely matching analyst forecasts. The core CPI measure, which excludes volatile food and energy components, rose 3.5% year-over-year compared to the previous month's 3.8% increase, coming in slightly below the anticipated 3.6% figure.
On a monthly basis, UK inflation showed significant moderation, with the CPI rising just 0.2% in May following April's 1.2% surge. This matched market projections exactly. The Pound's immediate reaction to these mixed inflation signals has been moderately positive, maintaining its recent gains against the Dollar.
Across the Atlantic, financial markets are preparing for the Federal Reserve's June policy meeting, where policymakers are widely expected to maintain current interest rates. Market pricing, as reported by Reuters, currently indicates approximately an 80% probability of a rate reduction in September, potentially followed by another adjustment in October. Currency traders will be closely analyzing the accompanying FOMC press conference for any shifts in policy guidance. A dovish stance from the Fed could potentially extend the current weakening trend in the US Dollar.
