GBP/USD pulls back from a six-month high of 1.3292 reached on Wednesday.
Thelitecoin miner asic US Dollar received support from stronger-than-expected consumer spending in March.
The Pound Sterling depreciated following softer-than-expected UK CPI data for March.
GBP/USD snaps its seven-day winning streak, easing to around 1.3230 during Thursday’s Asian session after retreating from a six-month high of 1.3292 reached on Wednesday. Traders now await key US data releases later in the day, including Building Permits, Housing Starts, the Philly Fed Manufacturing Index, and weekly Initial Jobless Claims.
The US Dollar Index (DXY) is trading higher near 99.60 at the time of writing, supported by stronger-than-expected consumer spending in March. US Retail Sales rose 1.4% in March, exceeding both February’s 0.2% gain and the forecast of 1.3%.
The Pound Sterling (GBP) is under pressure following softer-than-expected UK CPI data for March. Headline inflation rose 2.6% year-over-year, below the expected 2.7% and February’s 2.8%. Core CPI, which excludes food, energy, alcohol, and tobacco, rose 3.4%—in line with forecasts but slightly down from 3.5% previously. Monthly headline CPI increased by 0.3%, missing estimates and the prior 0.4% reading.
Notably, services inflation—a key metric for the Bank of England (BoE)—eased to 4.7% from 5.0%, strengthening expectations of a potential rate cut at the BoE’s May policy meeting. Additionally, the deteriorating UK labor market outlook, compounded by the recent hike in employers’ national insurance contributions effective this month, could further push BoE policymakers toward monetary easing.
