Anna 
In Tuesday’s London session, the Pound Sterling (GBP) remains range-bound around 1.2660 against the US Dollar (USD). The GBP/USD pair trades sideways as market focus shifts to the upcoming release of the United States Consumer Price Index (CPI) data for March, scheduled for publication on Wednesday. This data is anticipated to offer insights into the potential timing of interest rate adjustments by the Federal Reserve (Fed).
The US Dollar also hovers within a narrow range ahead of the inflation data, with the US Dollar Index (DXY), tracking the Greenback’s performance against six major currencies, trading marginally above 104.00.
Meanwhile, there is a slight improvement in the appeal of the Pound Sterling following surveys indicating modest growth prospects for the United Kingdom economy this year. Despite experiencing a technical recession in the second half of 2023, the UK Office for Budget Responsibility (OBR) projects a 0.8% growth for the economy in the current year. The rebound in domestic demand contrasts with ongoing geopolitical tensions, which continue to pose challenges such as supply chain disruptions, according to the OBR report.
Investor attention will remain on the UK’s monthly Gross Domestic Product (GDP) and factory data for February, set to be released on Friday. These data points will provide insights into the economic landscape following the 0.2% GDP expansion recorded in January. Additionally, sector-specific breakdowns, particularly from the manufacturing sector, will offer crucial information as it is considered a leading indicator of overall demand.
