GBP/USD remains under selling pressure below 1.2550, US PPI data looms

GBP/USD trades on a softer note around 1.2540 in Thursday’s early Asian session.
A resilient US economy and elevated inflation are likely to derail Fed's plans to cut interest rates this year.
Any hints about May rate cuts or any dovish remarks from the BoE might exert pressure on the GBP.

Lallalit Srijandorn FXStreet

The GBP/USD pair remains under selling pressure near 1.2540 after bouncing off the 2024 low of 1.2520. The sell-off in the major pair is driven by the firmer US Dollar (USD) after the upside surprises in US Consumer Price Index (CPI) data in March. Investors await the US March Producer Price Index (PPI) and weekly Initial Jobless Claims on Thursday ahead of the UK monthly Gross Domestic Product (GDP) numbers later this week.

On Wednesday, the release of the CPI inflation for March affirmed the conviction that sticky inflation would convince the Federal Reserve (Fed) to delay its rate-cutting plans. Fed Funds Futures market pushed expectations for the first rate cut from June to September, according to the CME FedWatch Tool.

US inflation, as measured by the CPI, rose 0.4% MoM in March, putting the yearly inflation rate at 3.5%, the Labor Department’s Bureau of Labor Statistics revealed on Wednesday. Meanwhile, the Core CPI, excluding volatile food and energy components, climbed 0.4% MoM while rising 3.8% from a year ago, compared with estimates for 0.3% and 3.7%, respectively.

On the other hand, the Pound Sterling (GBP) will be influenced by the United Kingdom's monthly Gross Domestic Product (GDP) and February Industrial Production, due on Friday. The markets anticipate the UK central bank cutting the rate after its June meeting. Meanwhile, any hints about May rate cuts or any dovish comments from the BoE policymakers might weigh on the GBP and act as a headwind for the GBP/USD pair.

GBP/USD

Overview
Today last price	1.2541
Today Daily Change	0.0001
Today Daily Change %	0.01
Today daily open	1.254

Trends
Daily SMA20	1.2654
Daily SMA50	1.2663
Daily SMA100	1.267
Daily SMA200	1.2587

Levels
Previous Daily High	1.2708
Previous Daily Low	1.252
Previous Weekly High	1.2684
Previous Weekly Low	1.2539
Previous Monthly High	1.2894
Previous Monthly Low	1.2575
Daily Fibonacci 38.2%	1.2592
Daily Fibonacci 61.8%	1.2637
Daily Pivot Point S1	1.2471
Daily Pivot Point S2	1.2402
Daily Pivot Point S3	1.2283
Daily Pivot Point R1	1.2659
Daily Pivot Point R2	1.2778
Daily Pivot Point R3	1.2847

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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