• Pound Sterling awaits a fresh trigger for guidance on interest rates.
• BoE policymakers are worried about high wage growth momentum.
• Easing geopolitical tensions has trimmed safe-haven bets.

The Pound Sterling (GBP) is stuck in a narrow range in Tuesday’s session as investors seek fresh economic triggers that could provide insights into the timing of rate cuts by the Bank of England (BoE).  The GBP/USD pair consolidates as the upside seems restricted as rate cuts by the BoE are inevitable, while more correction in the US Dollar has capped the downside.

The US Dollar Index, which gauges the value of the Greenback against six major currencies, has dropped to 103.70.

Improving hopes of a ceasefire between Israel and Palestine have strengthened the outlook of risk-sensitive assets (GBP), while safe-haven assets have come under pressure (USD). 

This week, the US Dollar will be guided by the United States Durable Goods Orders and the core Personal Consumption Expenditure price index (PCE) data for January. A sharp decline in the US core PCE price index would increase hopes of early rate cuts by the Federal Reserve (Fed).