GBPUSD oscillates in a narrow trading band around the 1.2485- 1.2505 region.

During the early Asian session on Wednesday, the GBPUSD pair is consolidating in a narrow range around 1.2490. The major pair is still restricted at the 1.2500 level ahead of the release of US GDP data.

The UK unemployment rate increased by 4.3% in July, compared to 4.2% the previous month; the growth rate decreased by 0.5% MoM in July, compared to 0.5% expansion in June.

The unemployment rate rose faster than expected on Tuesday, but the Bank of England refrained from raising interest rates. The Bank of England is nonetheless concerned that wage growth will support sustained inflation. According to the UK’s Office for National Statistics, the UK Unemployment Rate in the three months to July was 4.3%, up from 4.2% in the previous reading. Meanwhile, Employment Change for July fell by 207K from a 66K reduction in the previous reading, worse than the projected 185K drop. In the three months to July, average earnings including bonuses increased by 8.5%, compared to 8.2% the previous year. The result, without the incentive, stays at 7.8%, as predicted.

Furthermore, the UK GDP fell 0.5% MoM in July, following a 0.5% increase in June and a worse-than-expected 0.2% dip in June. The rate of the decline adds to concerns about a possible recession in the UK economy. Catherine Mann, a policymaker at the Bank of England (BoE), indicated on Monday that it was too early for the central bank to pause interest rates and that it was preferable for the central bank to err on the side of rising interest rates too high rather than suspending them too soon. However, the British Pound (GBPUSD) is attracting some sellers as investors are concerned about the UK economy’s effect from the aggressive tightening cycle.

The US Consumer Price Index (CPI) increased 0.6% month on month, up from 0.2% in the prior measurement.

On the other side of the Atlantic, the US Bureau of Labor Statistics said on Wednesday that headline inflation in August reached the largest monthly rise in 14 months, with the US Consumer Price Index (CPI) climbing 0.6% MoM from 0.2% in the previous reading. The yearly total increased from 3.2% to 3.7%, which was more than projected. The core CPI, which excludes volatile food and energy costs, rose 0.3% month on month, up from 0.2% the previous month. The annual core CPI was 4.3%, down from 4.7% before.

GBPUSD participants are anticipating the release of the US weekly Initial Jobless Claims, Producer Price Index (PPI), and Retail Sales on Wednesday.

GBPUSD anticipate that the Federal Reserve (Fed) will leave interest rates unchanged at its meeting next week. The numbers, however, suggest that the Fed should be on the alert for any re-acceleration in inflation in the coming months. Investors have priced in a 97% chance of interest rates being steady in September at 5.25%-5.50%, according to the CME Fedwatch Tool. However, the likelihood of a rate hike at the November meeting has risen to 49.2%.

In the lack of economic data from the UK docket on Wednesday, the GBPUSD pair is at the mercy of USD price movements. dynamics. Market players will be watching for the publication of weekly Initial Jobless Claims, the Producer Price Index (PPI), and monthly Retail Sales in the United States later in the day. The preliminary Michigan Consumer Sentiment Index for September is coming on Friday. These numbers may provide a clear direction for GBPUSD, and traders will seek trading chances in the vicinity of the key GBPUSD.