Ella 
In early trading in Asia on Wednesday, GBP/USD remained below the psychological mark of 1.2800. A stronger dollar following the release of US inflation data for February pushed GBP/USD lower. investor. Investors are awaiting UK GDP growth data for January, which is expected to show a monthly rate of 0.2%. GBP/USD is currently trading around 1.2795, up 0.02% on the day.
Data released by the Bureau of Labor Statistics on Tuesday showed that U.S. inflation, measured by the consumer price index, rose 0.4% in February, an annual rate of 3.2%. The monthly inflation reading was in line with expectations, while the annual rate came in higher than expected at 3.1%. Core inflation, which excludes volatile food and energy prices, came in at a higher-than-expected 0.4% monthly rate and 3.8% annual rate.
Stronger-than-expected U.S. inflation could persuade Federal Reserve policymakers to wait until at least the summer to begin cutting interest rates. Fed officials have stressed in recent weeks that a rate cut is possible at some point this year, but they cautioned against taking steps too early in the fight against high prices. Investors will get more clues from February retail sales data released on Thursday, which is expected to increase at a monthly rate of 0.8%. Stronger retail sales could prompt investors to further adjust their expectations following the release of February inflation data.
Figures published by the Office for National Statistics (ONS) on Tuesday showed that annual wage growth in the UK is falling. The average annual wage rate for the three months including bonuses in the UK fell to 5.6% in January from 5.8% previously, while the average annual wage rate for the three months excluding bonuses fell to 6.1% from 6.2% previously. In response to the data, bets on the Bank of England (BOE) to cut interest rates this year have increased slightly, with the market expecting the Bank of England to cut interest rates three times this year.
