GBP/USD: Sterling Rises for Seventh Day in a Row as UK Inflation Cools to 2.6% in March

British currency was winning pips against the US dollar on Wednesday, topping $1.3280 to book a fresh seven-month high.

📈 Sterling Extends Rally on Softer Inflation Print

• Beast mode activated: The GBPUSD climbed for a seventh straight session on Wednesday, breaking above $1.3280 and hitting a fresh seven-month high, as cooler-than-expected UK inflation data bolstered hopes for a Bank of England interest rate cut next month.
• According to the Office for National Statistics, headline inflation slowed to 2.6% in March, easing from 2.8% in February and coming in just below the 2.7% forecast. Core inflation — which strips out the usual suspects like energy, food, alcohol, and tobacco — also ticked slightly lower to 3.4%, down from 3.5% the previous month.

💵 Weaker Dollar, Stronger Sterling — A Double Boost

• That’s two straight months of cooling price pressures — and it’s giving the Bank of England some much-needed breathing room. The pound’s move wasn’t just about domestic data — it’s also a dollar story. With US inflation cooling and Trump’s tariff threats fueling market jitters, demand for the greenback has been wobbling.
• Combine that with rising confidence that the BOE could cut rates as early as May 8 when its regular meeting is set to take place, and you’ve got a clean runway for sterling strength.

🎯 Rate Cut Bets Rise as Pound Powers On

• At its last meeting in March, the BOE kept rates parked at 4.5% as policymakers juggled sticky inflation and uncertainty over global trade (tariffs on, tariffs off). But with the inflation trend now bending lower — and the macro fog lifting just slightly — the market is leaning hard into a rate cut narrative.
• For now, traders are cheering the pound’s resilience. Seven green candles in a row? Not too shabby for a currency that this year has had more plot twists than a Netflix thriller.