Affects Currency News Today

GBP/USD FORECAST: GBP/USD edged higher following the UK data release before paring gains to trade flat. All eyes turn to the US CPI release with the pair in need of a catalyst.

The Fed raised its benchmark rate by three-quarters of a percentage point to 3.00-3.25%, delivering the third straight 75 basis-point hike in an effort to curb strong inflationary pressures.

U.S. stocks sold off violently on Tuesday after stronger-than-expected U.S. inflation data sent Treasury yields higher on bets that the Fed will have no choice but to keep raising rates forcefully.

U.S. stocks soared on Wednesday on positive market sentiment after U.S. inflation data surprised to the downside, easing pressure on Fed to continue raising rates aggressively.

The Federal Reserve raised its benchmark interest rate by 75 basis points to 1.50-1.75%, the third hike in the ongoing tightening cycle aimed at cooling rising inflationary pressures.

U.S. inflation accelerated in March and reached its highest level since December 1981 amid soaring energy costs, but core CPI grew less than expected, a sign the worst may be over.