The Pound Sterling turns sideways near 1.2680 after correcting from 1.2700 with eyes on US inflation data for March.
The UK monthly GDP data for February will provide fresh cues about the economy’s performance.
The UK’s rising cost-of-living crisis supports BoE rate cut prospects.
The Pound Sterling (GBP) exhibits uncertainty in Wednesday’s London session ahead of the United States Consumer Price Index (CPI) data for March, which will be published at 12:30 GMT. Economists expect US inflation to remain relatively high in March due to increasing Oil prices, insurance costs and rentals.
Hot price pressures would shift market expectations of Federal Reserve (Fed) rate cuts to the third quarter of this year. On the contrary, softer-than-expected numbers would likely reinforce speculation of rate cuts in June.
On the domestic front, the Pound Sterling will be guided by the United Kingdom's monthly Gross Domestic Product (GDP) and the factory data for February, which will be published on Friday.
The GDP data will give a snapshot of the economy's state. The factory data represents the country’s manufacturing sector, a leading indicator of overall demand. Weak numbers would boost expectations for Bank of England (BoE) early rate cuts, while better-than-expected data will indicate that the economy is returning to recovery.
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