Gbpusd

The increase in income contributes significantly to the inflation rate, potentially pressuring the Bank of England (BoE) to raise interest rates once again.

Yesterday's UK interest rate announcement left the British pound hanging. The market needs to monitor the upcoming economic data.

The US dollar was hit as the decline in the ISM PMI report was seen as a negative sign ahead of the Nonfarm Payroll (NFP) data release on Friday.

The inflation data from the UK triggered a decline in expectations of a higher interest rate in the UK, consequently causing a drop in the value of the pound sterling against various major currency pairs.

GBP/USD hits a new yearly high of 1.2913, while EUR/GBP continues to be under pressure below the range of 0.8550.

The Bank of England Governor said that it is not necessarily going to raise interest rates as high as the market currently expects. As a result, GBP/USD crashed.

The UK's rising interest rates could stifle economic growth and have adverse consequences for millions of mortgage holders.

Due to strong wage growth, UK interest rate hike expectations increased along with the pound sterling exchange rate.

The Governor of the Bank of England has stated that inflation is expected to decline sharply and approach the 2 percent target by the end of this year.

Several analysts believe the pound sterling has become too expensive and has limited room for further appreciation.