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

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.