Sterling rose in European trade on Thursday and expanded the gains for the fourth straight session against the US dollar, trading near a three-year high.

UK consumer prices rose by the fastest pace in 14 months, renewing inflationary pressures on Bank of England policymakers and hurting the odds of a rate cut in June.

Now traders await crucial UK data later today that will provide clues on the pace of GDP growth in the second quarter of the year.

The Price

The GBP/USD price rose 0.2% today to $1.3441, with a session-low t $1.3405.

The pound rose 0.2% on Wednesday against the dollar, the third profit in a row, scaling a three-year peak at $1.3469 following hot UK inflation data.

US Dollar

The US dollar index fell 0.2% on Thursday on track for the fourth loss in a row, trading near a two-week trough at 99.34 against a basket of major rivals.

US President Donald Trump has so far failed to convince his Republican allies to pass his aggressive tax reform bill, with investors also growing concerned that US officials might try to weaken the dollar in current G7 talks in Canada.

UK Rates

UK consumer prices rose 3.5% y/y in April, up from 2.6% in March, and passed estimates of a 3.3% rise.

The data renewed inflationary pressures on the Bank of England policymakers, and tanked the odds of a June 0.25% rate cut from 25% to 15%.

Now traders await important UK data on various sectors to gather even more clues on the second quarter performance.

The UK GDP grew by a brisk 0.7% in the first quarter, beating estimates of a 0.6% rise and compared to the 0.1% growth rate in the last quarter of 2024.

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