The Pound Sterling struck a 5-month trough earlier today on the back of a strengthened US Dollar and ahead of data which could provide the Bank of England with the impetus for a rate hike later this year. The Pound Sterling find itself in the unenviable position of having given up all gains made this year; up to know, it had been a top tier performer in the currency market. The GBP/USD earlier hit $1.3412, a level not seen since late December 2017, and expectations that the BoE will still embark on a tightening path are dwindling rapidly. Meanwhile, the Dollar is strengthening on news that the brooding trade war with China may now be “on hold.”

As reported at 11:01 am (BST) in Tokyo, the GBP/USD was trading at $1.3408, down 0.44%; the pair has ranged from a session trough of $1.3391 to a peak of $1.3483. The EUR/GBP is trading at 0.87648 Pence, a gain of 0.27383%; the pair earlier hit a peak of 0.87237 while the high is at 0.87645 Pence.

Key Data to Watch Ahead

Ahead this week, FX traders will be watching key data for the UK, including GDP figures for the first quarter of 2018, personal and producer inflation data for April and retail sales figures for February. The Bank of England Governor, Mark Carney, is also due to speak on Thursday. Any misses on any of that data could alter sentiment for the timing of the next BoE rate hike which otherwise could occur in August. Data shows that market expectations of a rate increase have now fallen to a single 25-basis points increase rather than the two rate increases original anticipated.