Important Economic Events Ahead As GBP/USD Heads for May’s Highs

The British Pound is ending the week on a positive note, showing significant gains against other major currencies. GBP/JPY and EUR/GBP have all experienced upward movements. While these currencies have been slightly weak overall, the British Pound was stronger throughout the week, with GBP/USD closing with solid gains. This is partly due to the weakness in the USD after a soft jobless report, as well as from the growing expectations that the Bank of England may pursue more aggressive policy tightening in the coming months.

However, it is worth noting that UK inflation is projected to decrease in the upcoming months, which could potentially make current market predictions of additional 100 basis points (bps) of interest rate hikes in the UK appear overly optimistic.