GBP/USD steadies below 1.3450 following BRC Like-For-Like Retail Sales, UK labor data eyed

• GBP/USD holds ground ahead of UK labor market data release due on Tuesday.
• BRC Like-For-Like Retail Sales climbed 1.8% YoY in July, against the expected 2.1% increase.
• US inflation data is awaited that could influence the Federal Reserve's interest rate outlook.

GBP/USD moves little after the release of Like-For-Like Retail Sales by the British Retail Consortium, hovering around 1.3430 during the Asian hours on Tuesday. Focus is shifted toward the United Kingdom (UK) labor market data, including Claimant Count Change, Employment Change, and ILO Unemployment Rate, scheduled to be released later in the day.

BRC Like-For-Like Retail Sales rose 1.8% year-on-year in July, slowing from a 2.7% gain in June and falling short of the expected 2.1% increase. Helen Dickinson, Chief Executive of the British Retail Consortium, cautioned that current sales growth is hardly sufficient to offset the £7 billion in new costs imposed on retailers in the last Budget.

The GBP/USD pair may gain ground as the Pound Sterling (GBP) could receive support amid improving market sentiment ahead of the upcoming United States (US)-Russia meeting on Friday. US President Donald Trump and Russian President Putin will meet in Alaska on August 15, with an aim to finding a resolution to the conflict in Ukraine. However, Ukrainian President Volodymyr Zelenskyy is reportedly not expected to participate.

Traders will likely focus on the US consumer inflation data, due later in the North American session, as it could shape the Federal Reserve's (Fed) interest rate outlook. The July Consumer Price Index (CPI) is forecast to rise 0.2%, slightly below June's 0.3%, while the annual rate is projected to accelerate for the third consecutive month to 2.8%. Core CPI is also anticipated to pick up to 0.3%. Markets are now pricing in approximately 84% odds of a Fed rate cut at the September meeting, down from 90% a week ago, according to the CME FedWatch tool.