The GBP/USD pair is juggling in a tight range below 1.2100, as investors refrain from placing bets on the pair ahead of the US Inflation data.
The pair is displaying topsy-turvy moves in a range of 1.2079-1.2085 after a mild recovery from a low near 1.2070.
Investors have therefore preferred to remain on the sidelines ahead of the US Consumer Price Index (CPI) data, which is highly expected to surprise the market participants this time.
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For the Federal Reserve (Fed) to remain calm and turn neutral, a series of drops in the cost-push inflation is desired. A one-time slowdown in the price pressures won’t be enough to trim the journey towards the neutral rate, however, exhaustion signals would delight Fed policymakers.
On the UK front, the Gross Domestic Product (GDP) is expected to land at -0.2% vs. 0.8% in the prior release. The annual data is indicating a downward shift to 2.8% against the prior release of 8.7%. Also, the estimates for Manufacturing Production data are not displaying a rosy picture.
The economic data is likely to tumble to 1.3% from the former print of 2.3%. This may keep the pound bulls on the back foot.