POUND STEADIES ABOVE $1.27 MARK AHEAD OF UK INFLATION REPORT

Published on May 21, 2024 17:15

The British pound is steadying near a two-month high above $1.27 mark on Tuesday ahead of UK inflation reading. Besides, a slight pullback in dollar index from intraday gains is also benefitting the Britain currency. The dollar index futures rose to 104.60 earlier in the day extending gains from the previous session as Atlanta Fed President Raphael Bostic said that it will take time before the central bank is confident that inflation will return to 2%, reiterating that only one rate cut will be necessary this year. Investors now look ahead to the latest FOMC minutes this week to guide the outlook further. Meanwhile, GBPUSD is currently quoting at $1.2718, marginally up on the day and at its best level since 22nd March this year.