GBPUSD: Selling force is still strong!On Friday morning of this week during the Asian session, the GBP/USD exchange rate stabilized at 1.2550. The market is excited with predictions that the Bank of England (BoE) may reduce interest rates ahead of the US Federal Reserve (Fed), which is putting pressure on the British Pound and the exchange rate. Today, UK GDP numbers for February and Michigan's preliminary consumer sentiment index for April will be in focus for investors.
Earlier in the week, higher-than-expected CPI figures triggered speculation that the Fed may delay interest rate cuts this year in terms of quantity and timing. Fed officials believe the central bank has reached the peak of its current rate-tightening cycle and that current monetary policy puts them in a good position to respond to the economic outlook. They also open up the possibility of maintaining higher interest rates for longer if inflation tapers off. Hawkish statements from Fed officials increased the value of the US dollar, which in turn put downward pressure on the GBP/USD pair.
