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The GBP\/USD pair consolidates its gains around 1.2590 during the early Asian session on Wednesday. The\u00a0major\u00a0pair holds above the\u00a0key\u00a0100-day Exponential Moving Average (EMA) but remains capped under the 1.2600 hurdle.\u00a0The US Consumer Price Index and Retail Sales\u00a0report\u00a0for April\u00a0will be in the spotlight.\u00a0Also, the\u00a0Fed\u2019s\u00a0Kashkari and Bowman are due to speak.<\/p>\n
Wholesale inflation, as measured by the Producer Price Index\u00a0(PPI), hit its highest rate in a year, the Bureau of Labor Statistics showed Tuesday. The US PPI figure rose 2.2% on a yearly basis in April, compared to the 1.8% increase recorded in March (revised from 2.1%), and came in line with the estimation.\u00a0The Core PPI, which excludes\u00a0food and energy\u00a0costs, climbed 2.4% YoY in the same period, compared to an increase of 2.1% in the previous reading and matching the expectation.\u00a0On a monthly basis, the PPI and the core PPI\u00a0both\u00a0rose 0.5% MoM in April.<\/p>\n
The US Federal Reserve<\/a> (Fed) said\u00a0on Tuesday\u00a0that the April PPI provides more justification to keep rates higher for longer, but it does not necessarily mean the Fed will need to hike again.\u00a0Meanwhile, Cleveland Fed President Loretta Mester stated that she would still like the central bank to start tapering asset purchases this year, adding that the Fed is in a\u00a0“really good\u00a0place”\u00a0to study the economy before charting the rate path.\u00a0<\/p>\n Investors await the US CPI inflation data on Wednesday for fresh impetus. The hotter-than-expected inflation reading could dampen hope for a Fed rate cut this year and boost the Greenback against the Pound Sterling (GBP).\u00a0<\/p>\n On the other hand, the UK employment reports showed signs of cooling, which prompted the expectation that the Bank of England<\/a> (BoE) might cut interest rates in the coming months. The ILO Unemployment Rate rose to 4.3% in three months to March from 4.2% in the previous reading, the highest since last summer.\u00a0While\u00a0overall\u00a0wage growth\u00a0excluding\u00a0bonuses,\u00a0remained unchanged at 6.0% in the same reporting period,. The UK Employment Change arrived at -177K in the three months to March, versus a -156K decrease in the previous reading, the UK Office for National Statistics reported on Tuesday.\u00a0<\/p>\n