Pound US Dollar (GBP/USD) Exchange Rate Extends Gains On US Inflation Day
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The Pound US Dollar (GBP/USD) exchange rate trended upward on Wednesday as expectations of softening US headline inflation influenced traders’ predictions for central bank policy. At the time of writing, GBP/USD is trading at $1.2698, marginally higher than yesterday’s levels. The US Dollar (USD) encountered volatility on Wednesday as expectations for contradictory inflation data complicated central bank policy forecasts. While headline inflation was expected to have increased on an annualised basis for the month of March, core data was forecast to report a downtrend. The Pound rose against its peers midweek, potentially supported by lingering tailwinds from upbeat retail data on Tuesday. According to the British Retail Consortium (BRC), retail sales in the UK increased by 3.2% in March 2024 on an annualised basis, compared with the 1.8% expected. The Pound US Dollar exchange rate is likely to continue trading according to the outcome of yesterday’s consumer price data, but may also be influenced by producer prices in the US as well as the latest jobless claims release.
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