GBP/USD remains confined in a narrow range ahead of the UK CPI

GBP/USD consolidates in a range around 1.2700 mark, eyes UK CPI for fresh impetus

The GBP/USD pair struggles to gain any meaningful traction on Wednesday and oscillates in a narrow trading band, around the 1.2700 round-figure mark during the Asian session. Spot prices, meanwhile, hold above a one-month low touched last Friday as traders keenly await the release of the latest UK consumer inflation figures before positioning for the next leg of a directional move. 

The headline UK CPI is expected to tick higher and come in at 0.4% in May versus the previous print of 0.3%, while the yearly rate is seen decelerating to 3.5% from 3.9% in April. The data will play a key role in influencing the British Pound (GBP) and provide some impetus to the GBP/USD pair. The market attention will then turn to the Bank of England (BoE) monetary policy meeting on Thursday, which will help determine the near-term trajectory for the currency pair. Read more…

GBP/USD gears up for fresh UK CPI inflation print

GBP/USD is churning around the 1.2700 handle as markets gear up for a lopsided Wednesday market session with a US holiday session on the cards and a fresh update on UK Consumer Price Index (CPI) inflation on the docket. Another rate call from the Bank of England (BoE) looms ahead later in the week, followed by a packed economic calendar on Friday with UK Retail Sales, UK Purchasing Managers Index (PMI), and US PMIs to round out the trading week.

Market sentiment was broadly pinned into the midrange on Tuesday, with a flurry of appearances from Federal Reserve (Fed) officials hammering home the Fed’s cautious stance as policymakers continue to wait for further evidence of cooling inflation before making a decision on interest rates. Read more…