GBP/USD: Sterling Firm After Rate Hike and Inflation Jitters

The GBP/USD exchange rate floated unchanged to start Monday dealmaking, but key data is looming.

• The GBP/USD pair was off to a slow start this week, but an array of UK-focused economic data promises to bring the heat. Early-Monday water treading is welcome news for traders after the pound endured a rate hike last week, amid ongoing inflation pressures.
• The UK’s consumer prices for February stayed elevated at 10.4% – a sign that inflation continues to stick around. To get it down, the Bank of England hiked rates by 25 bps to 4.25% - a move that was widely anticipated and hence didn’t affect the pound all that much.
• Presently, the GBP/USD is gravitating toward $1.2240 after a slight pullback on Friday. Looking ahead, currency traders will be navigating a news-rich week with a two-day speech by Bank of England Governor Andrew Bailey and a release of the UK’s GDP data on Friday.