Ella 
GBP/USD consolidated around 1.2770 after hitting a two-month high in early Asian trade on Tuesday. The U.S. Dollar Index (DXY) is still facing some selling pressure around 104.60, which is providing some support for GBP/USD. Traders are awaiting data from the Conference Board’s consumer confidence index, the Federal Housing and Family Administration’s housing price index, and Fed officials Neel Kashkari, Mary Daly and Lisa Cook. Cook later Tuesday.
Markets have reduced bets on the Fed cutting rates, putting a 49% chance of a rate cut in September, down from 63% a week ago, according to the CME Group’s FedWatch tool. Key data from the U.S. this week may provide some signals about the economic outlook and the trajectory of inflation. The preliminary value of U.S. first-quarter gross domestic product (GDP) economic growth will be released on Thursday before the release of the U.S. Core Personal Consumption Expenditures Price Index (Core CPE), the inflation gauge favored by the Fed. Higher-than-expected U.S. inflation could boost the U.S. dollar and weigh on GBP/USD in the short term.
