Ella 
During early Asian trading on Friday, the GBP/USD pair was still trading around 1.2550. The market expects the Bank of England to cut interest rates earlier than the Fed, which puts pressure on GBP (GBP) and GBP/USD. Later on Friday, investors will focus on the UK’s monthly gross domestic product (GDP) for February and the preliminary US Michigan consumer confidence index for April.
This week’s higher-than-expected inflation data has fueled speculation that the Federal Reserve will have to delay the number and timing of interest rate cuts this year. Fed officials believe that the Fed has reached the peak of its current interest rate tightening cycle and that monetary policy is fully capable of responding to the economic outlook, including the possibility of maintaining interest rates at higher levels as inflation gradually declines. Hawkish comments from Federal Reserve officials boosted the dollar, dragging GBP/USD lower.
On Thursday, U.S. producer prices rose at an annual rate of 2.1% in March, missing expectations of 2.2%. The core producer price index, which excludes volatile food and energy prices, increased at an annual rate of 2.4%, below expectations of 2.3%.
