The Pound Sterling drops as hot US PPI data dampensappeal for risk-sensitive assets. The UK economy returns to growth after contracting in the second half of 2023. Investors seek fresh guidance for BoE interest rates. The Pound Sterling falls sharply against the US Dollarin Thursday’s early New York session as the United StatesProducer Price Index data for February came in hotter than expected.
Going forward, market expectations for the Bank of England rate cuts will drive the Pound Sterling’s next moves. Investors’ bets for the BoE reducing interest rates in the August meeting have strengthened on slower-than-expected wage growth in three months ending January. Technical Analysis: Pound Sterling falls below1.2800 The Pound Sterling drops below 1.2800 on dismal market mood. The 20-day Exponential Moving Average near 1.