Ella 
In early Asian trading on Wednesday, GBP/USD consolidated its gains around 1.2590. GBP/USD holds steady above the key 100-day exponential moving average (EMA), but still faces resistance at the 1.2600 mark. The U.S. consumer price index and retail sales report for April will be in focus. In addition, Fed officials Kashkari and Bowman will also speak.
Data released by the Bureau of Labor Statistics on Tuesday showed that wholesale inflation, as measured by the Producer Price Index (PPI), hit its highest level in a year. The U.S. producer price index (PPI) rose at an annual rate of 2.2% in April, compared with an increase of 1.8% (revised 2.1%) in March, in line with expectations. The producer price index, which strips out food and energy costs, rose at an annual rate of 2.4%. Both the producer price index and the core producer price index rose 0.5% on a monthly basis in April.
The Federal Reserve said on Tuesday that April’s producer price index provided more reason to keep interest rates higher for longer, but it did not necessarily mean that the central bank needed to raise interest rates again. Meanwhile, Cleveland Fed President Loretta Mester said she still hopes the central bank will begin tapering its asset purchases this year, adding that the Fed is in a “very good position” to raise interest rates as it plans to raise interest rates. Analyze the economic situation before proceeding.
Investors are awaiting U.S. inflation data on Wednesday for fresh impetus. Higher-than-expected inflation data could boost the dollar against the pound by dampening prospects for a rate cut by the Federal Reserve this year.
