GBP/USD declines below 1.3450 ahead of US Retail Sales, PPI releases

The GBP/USD pair is trading around 1.3425 during the Asian trading hours on Wednesday, pressured by renewed demand for the US Dollar (USD). Falling below the 1.3450 mark increases the likelihood of a bearish trend, with traders awaiting the US Retail Sales and Producer Price Index (PPI) data due later today. These economic indicators are crucial as they may lead to further reinforcement of USD demand, particularly if they outperform expectations. The outcome of the retail sales and PPI data could significantly influence market dynamics, as they signal inflationary pressures and consumer spending trends. A better-than-expected assessment may further weaken the GBP. Additionally, it is essential to consider the current market environment and movement in other major currencies. Factors like interest rate expectations and geopolitical developments may also impact the GBP/USD pair. Traders should be cautious and adjust position sizes carefully around these announcements.