The market right now is between the believe of a coming stagflation stance in US and a soft landing growth in US can call for an interest rate cut in the second half of this year. So, the market is waiting for the release of the first quarter GDP advanced reading by the end of this week.
In spite of the recent Upbeat US jobs labor report of US which has reduced this probability to cut as the jobs market is looking well and the average hourly earning is still showing inflation wage pressure on a constant growth.
But God willing, USD can continue to be under pressure versus the pound after the recent CPI release of March which has shown a rate above 3% which has shown some market anticipation of a hike by .50% next meeting which was not in the market discounting. The data bid the pound above 2 and the progress can continue if this week UK Q1 first reading came above 3% too!