GBP/USD Pressured as UK Core CPI Holds Firm, BoE Rate Cut Doubts Grow

GBP/USD is navigating mixed signals following the release of the UK CPI report for June. Headline inflation eased on the back of lower energy prices, but core inflation came in higher than expected, matching the prior month's reading and suggesting persistent underlying price pressures in the British economy. The data reinforces the Bank of England's hawkish stance, as the majority of policymakers continue to prefer keeping interest rates elevated for longer rather than increasing borrowing costs further. This positions sterling in a complex environment where sticky inflation supports higher-for-longer rates but also raises concerns about economic strain. For GBP/USD traders, the firm core CPI reading reduces the probability of near-term rate cuts, which is broadly supportive for the pound. However, the lack of clear directional shift in BoE policy expectations limits upside momentum. Traders should watch upcoming US data releases later in the session for further directional cues on the pair.