GBP/USD is currently showing signs of upward movement, supported by recent statistics.
The British pound sterling is striving to gain strength against the US dollar, with the current GBP/USD exchange rate at 1.2765.
Today's release of inflation data in the UK has provided valuable insights. Prices in the country have remained consistently higher than anticipated for the past four months. This trend could potentially serve as a basis for an upcoming interest rate hike.
In May, the Consumer Price Index (CPI) maintained its year-on-year increase of 8.7%, in line with previous data. Additionally, core inflation accelerated to 7.1% from the previous 6.8%. Market expectations had predicted a decline to 8.4% for the core price indicator.
These figures raise the likelihood of the Bank of England opting for an interest rate increase on Thursday, thereby prolonging the period of its tight monetary policy, which has been in effect for four years.
Although there are concerns in the market regarding a potential recession before the Bank of England can effectively curb inflation, the GBP remains resilient.