Sterling remains range-bound under 1.3400 as markets digest hotter-than-expected UK inflation data, with investors already pricing in a November Bank of England rate hike.
UK inflation beat forecasts but GBP/USD stayed under 1.3400 as a November BoE hike was already fully priced in.
The British Pound failed to gain momentum on Wednesday despite UK inflation figures exceeding market expectations across headline, core, and monthly metrics. The currency pair remains trapped below the 1.3400 resistance level, a threshold it has struggled to clear since mid-September.
The market had already fully priced in a November Bank of England rate hike, leaving little room for further upside despite the stronger-than-expected inflation data.