The GBP/USD pair continued its uptrend that began on April 8, trading around 1.3250 during the Asian session on Wednesday (4/16). Earlier in the day, the pair touched a fresh six-month high of 1.3256. The pair has maintained its strong momentum, boosted by improving global risk sentiment after US President Donald Trump announced exemptions for major technology products from his new "reciprocal" tariffs.

In the UK, labor market data showed on Tuesday that the unemployment rate held steady at 4.4% in February, in line with expectations. However, wage growth remained strong, maintaining pressure on the Bank of England (BoE).

The BoE has refrained from easing monetary policy, citing persistent wage strength. However, interest rate futures suggest that markets have priced in a 90% chance of a rate cut in May, with expectations for two more cuts later this year.

All eyes are now on the UK Consumer Price Index (CPI) data for March, due out on Wednesday. Economists expect the core CPI—which excludes food and energy—to hold steady at 3.5% year-on-year.

Meanwhile, the US Dollar Index (DXY), which measures the greenback against a basket of six major currencies, is trading lower near 99.80. Later in the day, focus will shift to the US Retail Sales data for March, which could provide fresh insights into the impact of tariff concerns on consumer behavior. (Newsmaker23)

Source: FXstreet