On Tuesday in Asia, GBP/USD remained in the positive zone, near 1.2650. GBP/USD moved higher ahead of consumer price index data on Wednesday on improving market risk appetite.
The U.S. dollar (USD) faces challenges amid market volatility, driven by the Federal Reserve’s cautious stance. The odds of a 25 basis point rate cut by the Fed in June have dropped to 51.1%, according to the CME FedWatch tool.
Minneapolis Fed President Neel Kashkari stressed the importance of the central bank’s commitment to fighting inflation. He stressed that while inflation currently hovers around 3%, the Fed must work to bring inflation back to its 2% target.
In contrast, Chicago Fed President Goolsby offered a different view on Monday, saying the economy was on a healthy path. He stressed that the economy remained strong due to a tight labor market.
On the other hand, UK March BRC like-for-like retail sales rose 3.2% on an annualized basis, compared with expectations for a 1.8% increase and the previous value of 1.0%. This marked the strongest growth since August 2023. The increase was largely attributed to an earlier Easter, which led to an increase in food sales ahead of the extended holiday weekend.
