Ella 
GBP/USD remains under selling pressure near 1.2540 after bouncing off the 2024 lows of 1.2520. GBP/USD fell on the back of a stronger US dollar following an unexpected rise in US consumer price index (CPI) data for March. Investors are awaiting Thursday’s release of the U.S. Producer Price Index (PPI) for March and U.S. initial jobless claims last week, ahead of UK monthly GDP data due later this week.
March inflation data released on Wednesday confirmed that persistently higher inflation will convince the Federal Reserve to delay plans to cut interest rates. The Fed funds futures market has pushed back expectations that the Fed will initiate rate cuts from June to September, according to the CME FedWatch tool.
On Wednesday, data released by the U.S. Department of Labor’s Bureau of Labor Statistics showed that U.S. inflation, as measured by inflation, increased by 0.4% monthly in March, and the annual inflation rate was 3.5%. Meanwhile, core inflation, which excludes the volatile food and energy components, rose 0.4% on the month and 3.8% on the year, compared with expectations of 0.3% and 3.7% respectively.
On the other hand, Sterling (GBP) will be affected by UK monthly gross domestic product (GDP) and February industrial production data due on Friday. The Bank of England is expected to cut interest rates after its June meeting. At the same time, if the Bank of England hints at a rate cut in May or if the Bank of England issues dovish comments, it may put pressure on the pound and be negative for GBP/USD.
