Pound slips below 1.3550 against dollar as February US CPI tops forecasts
AI Market Summary
GBP/USD slipped below 1.3550 as hotter-than-expected US CPI (3.1% YoY) lifted the dollar and reinforced "higher-for-longer" Fed expectations. With UK inflation still above the BoE's 2% target but cooling, markets price meaningful odds of a May rate cut, widening the perceived policy divergence versus the US. Near-term FX focus remains on upcoming BoE/Fed meetings and inflation persistence.
Impact level
● Medium
Affected assets
NCFXGBP2USD/USDT-0.22%
AI Insight · NCFXGBP2USD/USDTAI Insight
▼ Bearish
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Sterling fell below 1.3550 versus the US dollar on Tuesday, down 0.4% on the day. The US dollar index rose 0.3% after February CPI increased 3.1% year-on-year, exceeding expectations. UK inflation has eased from peak levels but remains above the Bank of England’s 2% target, limiting room to cut rates. Markets are pricing a 60% chance of a 25-basis-point BoE cut in May, though that could shift if inflation stays sticky.
