GBP/USD steady as UK CPI meets expectations; BoE rate cut still expected

GBP/USD showed limited reaction during the European session as the UK Consumer Price Index report came largely in line with market expectations, offering no surprises to shift the prevailing monetary policy outlook. The in-line inflation data reinforced existing market pricing for the Bank of England's next policy decision, with traders continuing to anticipate a rate cut at the upcoming meeting. The lack of an upside or downside surprise in the CPI figures left sterling in a holding pattern, as the data provided neither hawks nor doves with fresh ammunition to adjust their positioning. With the BoE rate cut remaining fully priced in, GBP faces continued downward pressure from the dovish policy expectations. Traders should monitor upcoming UK economic releases, including employment and retail sales data, for any shifts in the rate cut timeline. Near-term price action in GBP pairs is likely to remain range-bound until new catalysts emerge, with attention turning to subsequent sessions for further directional cues from US economic data releases.