Pound Advances As Investors Await US Inflation Data

(RTTNews) - The pound was higher against its major counterparts in the New York session on Monday, as investors awaited key economic data due later this week for more clues on the Fed's interest rate cut trajectory for this year.

U.S. producer price inflation data for April is due on Tuesday, while the more closely watched consumer price inflation figures will be published on Wednesday.

The CPI reading could offer more clues on the likelihood of interest rate cuts this year.

Traders see a 61.2 percent possibility that the Fed will cut rates in September.

Federal Reserve Vice Chair Philip Jefferson said that it will be appropriate to maintain the current restrictive monetary policy stance until there is evidence that inflation is slowing further.

The pound appreciated to a 6-day high of 1.2568 against the greenback and a 10-day high of 1.1403 against the franc, off its early lows of 1.2510 and 1.1344, respectively. The pound is seen finding resistance around 1.28 against the greenback and 1.22 against the franc.

The pound climbed to a 4-day high of 0.8592 against the euro and near a 2-week high of 196.28 against the yen, from its early lows of 0.8608 and 194.74, respectively. The pound is poised to challenge resistance around 0.84 against the euro and 199.00 against the yen.