Fundamental Market Analysis for July 15, 2026 GBPUSDBritish Pound/US DollarSAXO:GBPUSDFresh-Forexcast2004The pound enters the European session on a firmer footing after softer US inflation reduced expectations of an imminent Federal Reserve rate hike. Lower US Treasury yields weakened the dollar’s advantage and supported GBP/USD. However, the move remains restrained as the market awaits further evidence that the slowdown in US price pressures was not temporary. The UK’s domestic backdrop provides limited but noticeable support for sterling. The Bank of England Governor noted that renewed escalation in the Middle East had increased uncertainty but had not yet materially changed the UK inflation outlook. This reduces the risk of an abrupt shift in the central bank’s policy stance, although high oil prices and elevated borrowing costs remain vulnerabilities for the economy. Political and fiscal uncertainty limits the potential for one-sided gains in the British currency. Nevertheless, during the current session, the broader dollar factor appears stronger than the pound’s domestic risks. The weaker US inflation report has already changed expectations for the Federal Reserve’s near-term policy. If producer price data does not reverse this signal, the baseline scenario supports further gains in GBP/USD. Trading idea: BUY 1.34050, SL 1.33700, TP 1.34800