GBP/USD is holding steady around 1.2710 in the early Asian session on Tuesday. Fed officials are cautious about timing rate cuts, emphasizing the need to keep rates higher for longer. UK CPI inflation is expected to decrease to 2.1% YoY in April from the previous 3.2%.
Investors are waiting for fresh catalysts, with Fed speakers scheduled to speak later in the day. The Greenback is trading steadily on Tuesday due to the absence of major economic data releases from the US and the UK. The Fed is expected to keep rates unchanged in June, with a 76% chance of rate cuts by September.
The Bank of England may consider an interest rate cut at its June meeting, depending on data such as UK wage growth and consumer price inflation. UK CPI inflation is forecasted to ease to 2.1% YoY in April, down from 3.2% in March. A softer reading could lead to expectations of rate cuts and impact the Pound Sterling.