Pound Sterling stays on sidelines ahead of US inflation data
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The Pound Sterling remains uncertain 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 gas 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 domestic front, the Pound Sterling will be guided by the United Kingdom's monthly Gross Domestic Product (GDP) and factory data for February, which will be published on Friday. The rising cost-of-living crisis in the UK supports Bank of England (BoE) rate cut prospects. The Pound Sterling faces resistance near 1.2700 and struggles to extend upside. The US Dollar Index (DXY) rebounds to 104.15 ahead of the US inflation data. The rising burden of higher cost of living on UK households prompts demand for rate cuts by the BoE. Investors expect the BoE to pivot to rate cuts after the June meeting. The Pound Sterling (GBP) is the oldest currency in the world and the official currency of the United Kingdom. The decisions of the Bank of England impact the value of the Pound Sterling, as it adjusts interest rates based on achieving price stability. Economic data releases, such as GDP, Manufacturing and Services PMIs, and employment, can influence the direction of the GBP. The Trade Balance is also a significant data release for the Pound Sterling, as a positive net Trade Balance strengthens the currency. The Pound Sterling trades modestly flat below 1.2700 and awaits the US CPI data. Gold price trades in positive territory around $2,355 as investors await the US CPI data. Ripple (XRP) price tests a crucial support at $0.60. The US Consumer Price Index is set to rise 3.4% YoY in March, following the 3.2% increase in February. Annual core CPI inflation is expected to edge lower to 3.7% YoY in March.
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