Daily Analysis GBPUSD - 24 May 2023

In April, the UK's inflation, as measured by the Consumer Price Index (CPI), increased by 8.7% YoY This marks a decrease from the previous month's rate of 10.1% and is slightly below the forecasted rate of 8.2%. The recent surge in the cable pair's value can be attributed to the US Dollar's decline ahead of important data/events and concerns about a potential US default.

The robust inflation figures provide support for the recent hawkish stance of Bank of England (BoE) officials, including Governor Andrew Bailey, as expressed in the BoE Monetary Policy Hearings held the day before.

However, the cable pair buyers face challenges due to the latest US data and the Federal Reserve's hawkish stance. Nevertheless, the likelihood of a 0.25% rate hike in the upcoming June Fed meeting has recently increased, contributing to the relative strength of the US Dollar.

Investors will closely monitor speeches by BoE Governor Andrew Bailey and the Minutes of the latest Federal Open Market Committee (FOMC) Monetary Policy Meeting to gain further insights into the future decisions of these central banks.

From a technical perspective, the GBP/USD currency pair is currently exhibiting price consolidation around 1.2370, similar to other major currency pairs. Additionally, both the DXY index and other major currency pairs suggest that the US Dollar may experience a correction in the near future.