The GBP/USD pair is trading weaker around 1.2460 in early Asian trading on Thursday. This comes as the US Dollar sees a modest rebound. The focus for the day will be on the release of the US Gross Domestic Product (GDP) numbers for the first quarter, along with the usual weekly Initial Jobless Claims and Pending Home Sales.
In March, US Durable Goods Orders increased by 2.6%, reaching $283.4 billion, compared to a 0.7% rise in February. Despite these positive numbers, they did not have a significant impact on the US Dollar Index (DXY). Federal Reserve officials have indicated that rate cuts are not likely in the near future, causing a boost for the US Dollar.
Analysts predict that the Bank of England (BoE) will hold off on lowering borrowing costs until the next quarter. This decision comes after statements from BoE officials about the decline in UK inflation and reduced risks of elevated inflation. It is expected that the BoE will start easing monetary policy before the US Federal Reserve, potentially supporting the Pound Sterling (GBP) against the USD.