The British pound inched up towards $1.25 after reaching its weakest level in five months, propelled by stronger-than-expected inflation data from the UK, hinting that the Bank of England might need to prolong higher interest rates. The latest CPI report revealed that the UK's inflation rate fell to 3.2% in March, the lowest since September 2021 but exceeding the market expectation of 3.1%. Additionally, the core rate also decelerated to an over two-year low of 4.2%, although it remained slightly above forecasts of 4.1%. Meanwhile, the US dollar retained its strength, buoyed by hawkish remarks from Fed Chair Powell on Tuesday, suggesting that the Fed would maintain higher rates for an extended period "given the strength of the labor market and progress on inflation so far." Traders have recently adjusted their forecasts for interest rate cuts by both central banks this year, with the UK Rate now anticipated to decline to around 4.75% by the end of 2024, down from the current 5.25%.
The GBPUSD decreased 0.0016 or 0.13% to 1.2437 on Thursday April 18 from 1.2453 in the previous trading session. Historically, the British Pound reached an all time high of 2.86 in December of 1957. British Pound - data, forecasts, historical chart - was last updated on April 18 of 2024.
The GBPUSD decreased 0.0016 or 0.13% to 1.2437 on Thursday April 18 from 1.2453 in the previous trading session. The British Pound is expected to trade at 1.25 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.21 in 12 months time.