Pound Sterling could extend uptrend on a soft US CPI print

FXStreet Team FXStreet

Pound Sterling moves higher as US Dollar drops ahead of US Inflation data

The Pound Sterling (GBP) rises against the US Dollar in Wednesday’s London session ahead of the United States Consumer Price Index (CPI) data for March, which will be published at 12:30 GMT. Economists expect US inflation to remain relatively high in March due to increasing Oil prices, insurance costs and rentals.

Hot price pressures would shift market expectations of Federal Reserve (Fed) rate cuts to the third quarter of this year. On the contrary, softer-than-expected numbers would likely reinforce speculation of rate cuts in June. Read more...

GBP/USD Forecast: Pound Sterling could extend uptrend on a soft US CPI print

GBP/USD retreated slightly after rising above 1.2700 for the first time in over two weeks on Tuesday but closed the day in positive territory. The pair holds steady slightly below this level early Wednesday as market focus shifts to the US inflation data for March.

The table below shows the percentage change of Pound Sterling (GBP) against listed major currencies this week. Pound Sterling was the strongest against the Japanese Yen. Read more...

GBP/USD Forecast: Pound Sterling could face strong resistance at 1.2670

GBP/USD closed the first trading day of the week marginally higher but struggled to gather recovery momentum on Tuesday. As trading action turns subdued ahead of Wednesday's key inflation data from the US, the pair could have a difficult time making a decisive move in either direction.

After opening in negative territory, major equity indexes in the US recovered to end the day virtually unchanged on Monday. In turn, the US Dollar (USD) weakened slightly against its major rivals. Additionally, the Federal Reserve Bank of New York reported in its latest Survey of Consumer Expectations that the year-ahead inflation expectation remained unchanged at 3% March, not allowing the USD to gain traction. Read more...

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FXStreet Team

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