Pound Sterling maintains its rise near 1.2700 despite positive market Sentiment.

The pound Sterling (GBP) has turned Sideways after Reaching a new monthly high above 1.2700 versus the US dollar (USD) in Thursday’s London session. The GBPUSD pair’s near term outlook is positive. As Uncertainty over the timing of the Bank of England’s (BoE) rate cuts has increased due to stubborn wage growth in the United Kingdom (UK). This is a fortunate Scenario for the pound Sterling.

The UK’s strong wage growth makes the scenario for a BoE rate cut questionable.

UK Average Earnings increased steadily in the three months ending March. Increasing concerns about inflation’s decline to the desired rate of two percent. High wage growth fuels service inflation, which has remained a significant impediment to progress in the disinflation process.

By the weekend, the UK economic calendar had little to give. As a result, investors will be watching closely for comments on interest rates from BoE officials Megan Greene. And Catherine Mann, who are due to speak on Thursday and Friday, respectively.

Daily Market movers: Pound Sterling remains steady amid concerns over BoE rate reduction.

The Pound Sterling is trading near to the round-level barrier of 1.2700 against the US dollar. The GBPUSD pair continues solid as market sentiment remains upbeat. With significant speculation that the Federal Reserve (Fed) would begin decreasing interest rates at the September meeting. S&P 500 futures posted increases. The European session showed an improvement in investors’ risk appetites.
Moreover According to the CME FedWatch tool, the probability of interest rates falling from current levels. At the September meeting has grown to 73%, up from 69% a week ago. Investors’ confidence in Fed rate cuts has increased as a result of a lackluster US inflation report, softening labor market conditions, and static Retail Sales data in April.

An projected drop in the US CPI boosts Fed rate-cut chances for September.

The pound Sterling (GBP) has turned Sideways after Reaching a new monthly high above 1.2700 versus the US dollar (USD) in Thursday’s London session.

On Wednesday, the US Bureau of Labor Statistics (BLS) revealed that the annual headline and core Consumer Price Index (CPI) rose at slower rates of 3.4% and 3.6%, respectively, as expected. Fed policymakers make most of their interest rate decisions based on core inflation statistics. Furthermore Despite the fact that inflation is nearly beyond the minimum rate of 2%, an estimated The drop in price pressures has boosted investors’ confidence that inflation will gradually return to the anticipated pace of 2%.
Moreover Retail sales statistics, a leading indicator of consumer spending that also provides insight into the prospects for inflation, remained constant in April but were predicted to climb by 0.4%. This suggests that the inflation forecast has weakened.
Furtgermore The next move in the US Dollar will be influenced by Fed policymakers’ comments on interest rate guidance. With Fed Vice Chair for Supervision Michael Barr, Fed Bank of Philadelphia President Patrick Harker, Fed Bank of Cleveland President Loretta Mester. And Fed Bank of Atlanta President Raphael Bostic scheduled to speak Thursday.
Investors will focus on the initial economic statistics. Jobless Claims figures for the week ending May 10 are expected to be down to 220,000. Individuals filing Unemployment benefits Increased to the highest level in eight months last week, putting a strain on the US dollar.