GBP/USD: Cable Eases After Soft CPI Data But Still Lacks Clearer Direction Signals
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The GBP/USD currency pair experienced a two-week low following softer-than-expected UK February inflation data. The weak inflation numbers are fueling market expectations of a potential Bank of England rate cut in May. Technical analysis suggests potential further downside, with support levels at 1.2883 and 1.2798, while economists remain cautious about sustained inflation easing.
March 26, 2025 | 12:00 pm
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The Invesco CurrencyShares British Pound Sterling Trust (FXB) may experience downward pressure due to softer UK inflation data and growing expectations of a BoE rate cut.
Weak inflation data typically leads to expectations of monetary easing, which can negatively impact currency-focused ETFs like FXB in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80