FX Watch: GBP/USD to Extend Its Uptrend After the U.K. CPI Release?

In case you missed our latest FX Weekly Recap, Uncle Sam’s slightly weaker economic data got traders pricing in no interest rate hikes or even interest rate cuts from the Fed. Luckily for USD bulls, Fed members also came out and hinted at a “higher for longer” interest rate environment which helped limit USD’s losses.

The British pound, on the other hand, came in second to the New Zealand dollar in overall strength as GBP bulls took advantage of the overall risk-friendly and anti-USD environment.

And that’s after Bank of England (BOE) Chief Economist Huw Pill suggested that we may see interest rate cuts as early as summer!