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The British Pound slips after UK CPI eases
The UK consumer prices rose to 3.4% down from 3.5% expected and 4% in January
UK CPI slows to 3.4%, signalling potential for easing inflation, targeting 2%.
GBP/USD falls to 1.269, indicating second consecutive session of decline.
BOE likely to maintain rates amid moderated inflation, while Fed faces 59% odds of easing by June despite persistent inflation.
On the Market Watch:
UK CPI hits slowest pace of inflation since September 2021, raising optimism that the persistent inflation trend might ease and eventually return to the central bank's target of 2% soon.
The UK consumer prices rose to 3.4% down from 3.5% expected and 4% in January. The GBP/USD dropped to 1.269 to record its second session in the red.
Investor focus will stay squared on the Bank of England which is expected to maintain current interest rates unchanged during its Thursday meeting, but the indication of moderating inflation could grant policymakers more flexibility to offer a more dovish outlook going forward.
Meanwhile on the other side of the world, traders price in a 59% that the Fed could start easing in June despite higher inflation figures.
Traders will closely analyze Chair Jerome Powell's remarks during the accompanying press conference, along with the central bank's updated economic forecasts, to glean insights into when officials believe it might be feasible to start trimming interest rates amid higher inflation above target.
The dollar continued to trade in a tight range, while gold steadied near $2150.
