GBP/USD: Sterling Momentum Eases Ahead of Inflation Data

The UK’s consumer-price index is expected to show that price pressures cooled in February.

• The GBP/USD pair tumbled to start Tuesday trading as currency traders eyed the latest inflation report slated for release tomorrow. The pound sterling was trading at a three-week high of $1.2290 before coming down in early dealmaking today to gravitate toward $1.2230.
• A notable dollar weakness has shot up the value of the pound over the past couple of weeks. The upward move was mostly fueled by bank woes in the US, which then quickly spread to the other side of the Atlantic as money managers scrambled to balance their portfolio.
• Forex speculators are now looking to see whether the UK’s inflation eased in February. Analysts are calling for a moderate decrease in consumer prices with the CPI print expected to show a price advance of 9.9% year-on-year, lower than January’s 10.1% clip.