British Pound shows signs of recovery amid favourable inflation data
The British pound sterling is showing signs of recovery, bouncing back from a five-month low, with GBP/USD stabilising around the 1.2470 mark on Thursday. This rebound is attributed to the release of UK inflation data, suggesting a possible monetary policy easing by the Bank of England (BoE).
The UK's consumer price index (CPI) slowed to 3.2% year-on-year in March, down from 3.4% in February, marking the lowest inflation rate in two and a half years. This slowdown has raised investor optimism regarding potential policy easing by the BoE, particularly since core inflation has also dropped to its lowest since mid-2021. However, persistent inflation in the services sector may lead to cautious deliberation among certain members of the monetary committee. Read more...
GBP/USD Forecast: Pound Sterling could extend rebound on improving risk mood
GBP/USD gained traction in the early European session on Wednesday following the stronger-than-expected Consumer Price Index (CPI) data from the UK but struggled to gather bullish momentum. After closing the day marginally higher, the pair seems to have gone into a consolidation phase below 1.2500 on Thursday.
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 rises as UK inflation higher than expected
The British pound has rebounded after sliding 2.1% over the past week. In the European session, GBP/USD is trading at 1.2461, up 0.28%.
Inflation in the UK continues to decline but the March release was not as strong as expected. Inflation eased to 3.2% y/y, down from 3.4% in February but higher than the market estimate of 3.1%. The inflation rate fell to its lowest since September 2021 as inflation eased for food, restaurant and hotels. Monthly, inflation was unchanged at 0.6%, above the forecast of 0.5%. Read more...
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