Anna 
The British Pound (GBP) experienced a swift recovery, driven by the higher-than-expected UK Consumer Price Index (CPI) data for December. The robust CPI figures have tempered speculations of an imminent interest rate cut by the Bank of England (BOE), contributing to the currency’s resurgence.
Investors are eyeing potential upside for GBP/USD, buoyed by the optimism that the Federal Reserve might initiate interest rate cuts ahead of the Bank of England. The contrasting monetary policy expectations between the two central banks are influencing the currency pair.
Despite the fragile UK economic outlook, persistent inflationary pressures are prompting BOE policymakers to exercise caution. The trajectory of the pound hinges on the forthcoming December retail sales data scheduled for release on Friday. Should the retail sales figures reflect upbeat consumer spending, it is likely to further undermine expectations of an early interest rate cut by the Bank of England.
