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GBP Drops Against USD Ahead of US CPI
The GBP/USD exchange rate dropped from approximately 1.3460 to roughly 1.3425 in the morning of November 10. Traders are waiting for the October US CPI report, with the pound not clearly weakening ahead of the release. The dollar is gaining support from rising expectations of a December Fed rate hike, with financial traders putting the odds of a rate increase in December at over 80%. The Bank of England raised its benchmark rate to 4% on November 5, warning that UK inflation could hit 5% by mid-2027 due to higher energy costs.