GBP/USD Slides Toward 1.3285-1.3300 Support Following Hotter-Than-Expected US CPI Inflation

GBP/USD dropped toward support near 1.3285-1.3300 as the US dollar rallied on higher-than-expected inflation data. Sterling initially breached the 1.3400 psychological mark, falling over 0.40% to trade around 1.3396 after previously struggling above 1.3450. The downturn followed October US headline CPI rising 0.4% month-over-month against 0.3% expected, while core CPI gained 0.3% versus 0.2% expected. Fed Governor Christopher Waller previously indicated a 50-basis-point hike could be warranted if core CPI reached 0.3%, and the FedWatch Tool subsequently priced an 89.5% probability of a 25-basis-point hike in December.