Ella 
In early Asian trading on Friday, GBP/USD rose slightly to around 1.2525. GBP/USD rebounded from lows of 1.2445 following a dovish stance from the Bank of England (BOE). The focus on Friday will turn to the UK’s preliminary first quarter gross domestic product (GDP) and the US Michigan consumer confidence index.
Bank of England Governor Andrew Bailey said at a press conference: “A rate cut next month is possible.” The Bank of England maintained a dovish stance, opening the door to future interest rate cuts, which put some pressure on the pound (GBP) following the Bank of England’s monetary policy meeting.
Meanwhile, Huw Pill, chief economist of the Bank of England, said that although the central bank needs more signals of progress in inflation, they are more confident that they will consider cutting interest rates at several meetings in the future. Investors have been pricing in two rate cuts this year, with the first expected in August.
On the other hand, San Francisco Fed President Mary Daly said late Thursday that inflation uncertainty will increase in the coming months and it may take “more time” to bring inflation down to the central bank’s target. Policy differences between the Bank of England and the Federal Reserve could weigh on GBP/USD and prevent GBP/USD upside in the short term.
