Pound Strengthens Against US Dollar With US CPI In Focus
The British pound (GBP) held firm near a four-month high of 1.2965 against the US dollar (USD) in the European session on Wednesday (3/12). The GBP/USD pair maintained its gains as the US dollar measured temporary support ahead of the US Consumer Price Index (CPI) data for February, due to be released at 12:30 GMT.
The US inflation data will significantly influence market speculation on the Federal Reserve’s (Fed) monetary policy outlook. On Friday, Fed Chair Jerome Powell said the central bank could keep “policy restraint on hold for longer if inflation gains stall”.
Economists expect headline inflation to slow to 2.9% year-on-year from 3% in January. In the same period, core CPI – which excludes volatile food and energy prices – is expected to have risen to 3.2% from the previous release of 3.3%. Both headline and core CPI are expected to grow at a slower pace of 0.3% on a monthly basis.
Source: FXStreet