GBP/USD hits highest since Feb 2022 after UK inflation data fuels speculation of delayed BoE rate cuts.
Sterling rallied to 1.3446, its highest since February 2022, after UK CPI surprised to the upside for April. The data dampened expectations for near-term Bank of England rate cuts and lifted the pound by as much as 0.58% intraday.
Parallel to the domestic impulse, broad dollar softness added fuel. Investors rotated away from U.S. fixed income ahead of a key 20-year Treasury auction, amid diminished confidence in American fiscal policy. On the charts, GBP/USD cleared the 1.3420 zone with conviction, now trading comfortably above its 50-period SMA at 1.3309.
