GBP/USD Holds Steady Near 1.3620 as Soft US CPI Boosts June Fed Cut Bets

The GBP/USD pair maintained its stability around the 1.3620 level following the release of softer-than-expected US Consumer Price Index (CPI) data. This cooling inflation has prompted market participants to re-evaluate the Federal Reserve's monetary policy path, significantly increasing the odds of a rate cut in June. As price pressures in the United States show signs of easing, the US Dollar faced downward pressure against major currencies. Analysts suggest that the shift in interest rate expectations is the primary driver behind the Pound's current resilience. Consequently, the broader market sentiment has turned more favorable toward risk-sensitive assets as the necessity for restrictive policy diminishes. Markets are now closely watching for further economic data to confirm this downward inflationary trend.