Source: <\/span>DailyFX Economic Calendar<\/span><\/p>\n Looking at the CPI chart, the main sectors that have contributed to the inflation impression come from food and non-alcoholic beverages and leisure and culture. Both the core and headline numbers beat estimates, while the PPI followed suit (albeit below February’s print). The UK now remains the nation with the highest inflation rate in Western Europe, putting additional pressure on the Bank of England (BoE).<\/p>\n Trade Smarter – Sign up for the DailyFX newsletter<\/p>\n Receive timely and compelling market feedback from the DailyFX team<\/p>\n Subscribe to the newsletter<\/p>\n Looking at money market prices below, the BoE is expected to raise interest rates for another 25 bps<\/span> next month with a quasi 100%<\/span> probability! This week has been particularly important for the UK economy and its incoming data starts with yesterday’s jobs report which reiterated the tight labor market environment in the UK. Combining these two data points, the BoE may still need to do more in terms of monetary policy tightening to quell inflationary pressures. The first hints have come from Chancellor Hunt of the United Kingdom in the previous appointment. Later today, the BoE’s Catherine Mann is scheduled to speak and may echo those hawkish sentiments.<\/p>\n BANK OF ENGLAND PROBABLE INTEREST RATES<\/p>\n Source: Refinitiv<\/span><\/p>\n GBP\/USD DAILY CHART<\/p>\n Picture made by <\/span>Warren Venketas<\/span>GI<\/span><\/p>\n Daily GBP\/USD price action remains centered around the 1.2400<\/span> psychological level as markets reflect on recent data. I expect more upside for the remainder of the trading day as the Fed has been losing its recent effectiveness, leaving room for GBP strength.<\/p>\n Key resistance levels:<\/span><\/p>\n Key Support Levels:<\/span><\/p>\n IG Customer Sentiment (IGCS) data shows that retail traders are currently net SHORT <\/span>in GBP\/USD with 52% net short traders (as of this writing). At DailyFX we normally take a contrary view to crowd sentiment, but due to recent changes in long and short positioning, we come to a cautious short-term bias.<\/p>\n Contact and follow Warren on Twitter:<\/span>@WVenketas<\/a><\/p>\n element within element. Surely this is not what you wanted to do! Instead, you load your application’s JavaScript package inside the element. ![\"image2.png\"](\"https:\/\/a.c-dn.net\/b\/4qUkZT\/image1.png\" "\\"\\"")
<\/a><\/p>\nUK inflation to cement another rate hike in May?<\/h2>\n
<\/a><\/p>\nTECHNICAL ANALYSIS<\/h2>\n
<\/a><\/p>\nMIXED FEELING FROM THE IG CUSTOMER<\/h2>\n