Sterling fell to its lowest level in 2018 following less-than-expected inflation data, raising doubts that the Bank of England could raise interest rates this year. Inflation slowed in April, with the consumer price index up by 2.4% on annual basis.
Forecasts for March's inflation were forecast at 2.5%. The April reading is the weakest since March 2017. GBPUSD trades at 1.3320 against the US dollar, the lowest since December 18, near an important support level at 1.33.
Sterling has been hit recently by weak UK economic data as well as concerns about Brexit talks.
Markets expect the release of the FOMC meeting minutes at the beginning of this month, where the Federal Reserve has kept interest rates unchanged at 1.75%. Market expectations are rising at the time for next month's rate hike.
