GBP/USD drifts lower below 1.3450 ahead of US GDP release

• GBP/USD softens to near 1.3435 in Thursday's early European session. 
• The federal trade court struck down Trump's reciprocal tariffs, supporting the US Dollar. 
• Odds of more BoE rate cuts fall as food inflation rises.

The GBP/USD pair trades in negative territory around 1.3435 during the early European session on Thursday. The Greenback strengthens against the Pound Sterling (GBP) after the US trade court blocks US President Donald Trump's sweeping tariffs. The preliminary reading of the US Gross Domestic Product (GDP) report for the first quarter (Q1) will be the highlight later on Thursday. 

The summary of the May meeting of the Federal Open Market Committee (FOMC) suggested that uncertainty about the economic outlook has increased further. Federal Reserve (Fed) officials said meeting its dual goals of full employment and low inflation has been complicated due to policy uncertainty. Fed policymakers emphasized the need to keep interest rates on hold for some time, as policy shifts in the US cloud the economic outlook.

Early Thursday, a US federal court blocked Trump's "Liberation Day" tariffs from going into effect. A federal trade court ruled that an emergency law invoked by the White House does not give Trump unilateral authority to impose tariffs on nearly every country. This headline provides some support for the Greenback and acts as a headwind for the major pair. 

The chance of more Bank of England (BoE) interest rate cuts falls as food inflation in the United Kingdom (UK) has risen for the fourth consecutive month, indicating signs of sticky inflation. Barclays analysts no longer expect the BoE to cut rates in June and now forecast the base rate will drop to 3.5 % by February 2026, rather than by the end of this year as previously predicted. A less dovish stance from the UK central bank might help limit the GBP's losses in the near term.