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by The British pound recently soared to a two-month high of $1.27 against the US dollar (GBP/USD). This surge is primarily due to growing expectations that the Federal Reserve will cut interest rates. Softer consumer inflation and stagnant retail sales in the US have weakened the dollar, making other currencies like the pound more attractive.
GBPUSD – Eyes on UK Inflation Data
Eyes on UK Inflation Data
Investors are closely monitoring upcoming inflation data in the UK. The annual inflation rate for April is expected to drop to 2.1%, the lowest level since June 2021. This figure is near the Bank of England’s target of 2%. Additionally, core inflation, which excludes volatile items, is predicted to fall to 3.7%, the lowest since October 2021.
Bank of England’s Next Moves
In May, the Bank of England decided to keep interest rates steady. However, two committee members hinted at a potential rate cut in the future. This shift suggests that the Bank of England might move towards lower borrowing costs, which could impact the pound’s value.
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