Anna 
Following a recent surge to a monthly high of 1.2700 on Thursday, the Pound Sterling (GBP) traded sideways during Friday’s London session. The GBP/USD pair faced challenges in extending its gains as investors redirected their attention towards the upcoming release of the United Kingdom Consumer Price Index (CPI) data for April, scheduled for publication on Wednesday.
Market participants are eagerly awaiting the UK inflation figures as they are expected to offer valuable insights into the future interest rate trajectory. With investors divided between the June and August meetings, speculation abounds regarding when the Bank of England (BoE) might commence interest rate adjustments.
BoE Governor Andrew Bailey’s remarks following the March CPI data release on April 17 hinted at a likely convergence with the Bank’s projections. Bailey expressed confidence that UK inflation is poised to approach the 2% target in the upcoming report. Noting the unique energy pricing system in the UK, Bailey anticipated a notable decline in the forthcoming data, as reported by Bloomberg.
The upcoming CPI data is positioned to exert a significant influence on the Pound Sterling, with market sentiment closely tied to the implications for BoE policy decisions. As investors brace for the data release, the GBP remains poised for potential movement in response to the fresh cues provided by the UK inflation report.
