GBP/USD extends the upside above 1.2700, focus on UK-US PMI data

The GBP/USD pair is trading stronger around 1.2720 in early Asian trading on Thursday. The recent UK CPI data showed a rise of 2.3% YoY in April, higher than the expected 2.1%, which has reduced expectations of a rate cut by the Bank of England. The FOMC Minutes revealed concerns about inflation not reaching the 2% target, leading to uncertainty about future rate cuts by the Federal Reserve. In response to the data, investors have adjusted their expectations for both central banks, with the GBP gaining strength against the USD. Look out for the upcoming flash PMI reports from the UK and US later today for further market impact.