Ella 
The US dollar consolidated, with GBP/USD trading modestly lower towards 1.2675.
Federal Reserve official Goolsby said the Fed must weigh how long it can maintain its current interest rate stance without harming the economy.
The UK economy will grow by 0.8% this year, the OBR forecasts, as domestic demand rebounds.
In early trading in Asia on Wednesday, GBP/USD was trading around 1.2675, with a mildly bearish trend. Affected by the market’s cautious sentiment, the U.S. dollar index consolidated above the 104.00 mark. Investors were awaiting U.S. consumer price index (CPI) inflation data and speeches from Fed’s Bowman and Goolsby later in the day.
Some Fed officials issued hawkish comments. Chicago Fed President Goolsby said on Monday that the latest jobs report was “pretty strong,” but the central bank must weigh how long it can maintain its current interest rate stance without hurting the economy. Meanwhile, Minneapolis Fed President Neel Kashkari said the labor market is no longer “hot” but remains tight. Kashkari said the basic judgment is that inflation will continue to slow.
Financial markets are pricing in a June rate cut at nearly 57%, while the probability of a July rate cut has fallen below 75%, the CME FedWatch tool shows. The focus will be on U.S. inflation data for March as it could help the Federal Reserve determine the path for monetary policy after the data showed inflation recorded an annualized rate of 3.2% last month. Signs of sustained U.S. inflation and strong economic growth could boost the dollar in the near term.
