GBPUSD continues to rebound near 1.2500 due to higher-than-expected UK inflation. Inflation data for the UK increased more than anticipated in April.
GBPUSD Key considerations
GBPUSD increases attempts to regain its high for the day as UK inflation for April comes in over expectations.
In April, the UK CPI recorded 8.7% YoY statistics, down from 10.1% in March and 8.2% predicted.
As a result of the US dollar’s decline and the deadlock in the debt ceiling negotiations, the pound gains.
BoE’s Bailey must defend his aggressive stance in order to help Pound customers.
UK data statistics
Because UK inflation increased more than anticipated in April. The GBPUSD exchange rate soared to an all-new intraday top of 1.2465. The dollar’s fall before of the important data & events and owing to new default worries may have contributed to the Poun dpair’s recent run-up.
Nevertheless, the Consumer Price Index (CPI) measure of inflation in the UK showed an increase of 8.7% year over year in April. As opposed to the 10.1% recorded in the previous month and the 8.2% expected.
The recent hawkish stance of (BoE) authorities, notably Governor Andrew Bailey, in the prior day’s BoE Monetary Policy Hearings. It is justified in light of the high inflation numbers. The same enables the British pound to anticipate its largest daily rise in a week.
Aside from the UK statistics, the US Dollar’s weakness benefits purchasers of the GBPUSD pair Since the US DXY breaks a two-day streak of gains by posting slight losses near 103.45. The continuing US debt ceiling controversy receives significant attention when charting the USD’s recent decline. As authorities lately fight to defend the expectations of averting default.
On the other hand, stronger US data reports and aggressive Fed fears put the purchasers of the Pound pair under pressure. However, recent increases in the probability of a 0.25% rate increase at the Fed meeting in June have allowed the US Buck to hold steady.
Technical View
To support the GBPUSD pair’s most recent advance, a daily close above the 50-DMA barrier of around 1.2430 is required.
