GBP/USD remains confined in a range below 1.4200 mark post-UK CPI
The GBP/USD pair extended its sideways consolidative price motion and remained restricted in a choice under the 1.4200 mark post-UK inflation figures.
Following the previous day’s modest pullback from near three-month tops, the pair regained some traction on Wednesday amid the not unusual place bearish sentiment surrounding the US greenback. Expectations that the Fed will keep interest rates low for a prolonged length persisted appearing as a headwind for the greenback and extended some resource to the GBP/USD pair.
On the opposite hand, the British pound remained nicely supported thru the upbeat outlook for the United Kingdom economic restoration from the pandemic, bolstered thru the slow easing of lockdown restrictions. The optimism modified into further fueled thru the contemporary UK purchaser inflation figures, which showed that the headline CPI rose 1.5% YoY in April as in competition to 1.4% expected and 0.7% previous.
That said, a commonly softer threat tone – as depicted thru a modest pullback the fairness markets – helped limit the downside for the safe-haven USD and may cap earnings for the GBP/USD pair. Investors moreover seemed reluctant to location any aggressive bullish bets, rather preferred to wait on the sidelines earlier of Wednesdays release of the FOMC meeting minutes.