The post GBP/USD rebounds on soft CPI, boosting Fed cut bets appeared on BitcoinEthereumNews.com.

US CPI misses forecasts; softer headline and core inflation bolster case for two Fed cuts in 2025. UK labor market cools as wage growth slows to 5.6%, lowest since November 2024, easing BoE pressure. Fed-BoE policy gap narrows; GBP/USD supported by weaker Dollar and steady BoE expectations. The Pound Sterling (GBP) recovered from Monday’s losses and climbed over 0.35% against the US Dollar (USD) after the latest inflation report in the United States (US) kept traders’ hopes high for further easing by the Federal Reserve (Fed). GBP/USD trades at 1.3226 after bouncing off a daily low of 1.3165. Sterling climbs 0.35% after cooler-than-expected US inflation revives easing hopes; UK jobs data signals BoE caution The US Consumer Price Index (CPI) in April was slightly below estimates in the monthly headline and core figures. The CPI came in at 0.2% below forecasts of 0.3%, but a touch higher than the March print of -0.1%. Core CPI stood at 0.2%, up from 0.1% but beneath forecasts of 0.3%. At the same time, inflation rose by 2.3% YoY, a tenth below estimates and the previous month’s reading, and core metrics stood at 2.8% YoY. Most analysts estimated that April’s print could reflect the impact of tariffs. Still, “larger increases are in the pipeline” for inflation, according to Bank of America economists. Across the pond, the latest United Kingdom (UK) employment figures showed the job market is cooling further, a relief for the Bank of England (BoE). The number of employees fell by nearly 33K, while wage growth in the three months to March rose by 5.6%, the slowest since November 2024. BoE’s Chief Economist, Huw Pill, crossed the wires. He stated that he remains concerned about a reacceleration of inflation, as he sees second-round effects. He remains the most hawkish member, after last…

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Filed under: News - @ May 13, 2025 7:27 pm