• GBP/USD is consolidating in a narrow range of 1.3040-1.074 on hiatus in worldwide indices.
• A higher UK inflation print has triggered the fourth rate hike expectations by the BOE.
• The speeches from the Fed’s Powell and BOE’s Bailey hold significant importance this week.

The GBP/USD pair is auctioning in a narrow range of 1.3040-1.3074 and is expected to remain lackluster amid Easter Monday. The cable will be addressed by thin volumes and narrow ticks amid a holiday-truncated week.

Earlier, the cable posted a firmer rebound after hitting a yearly low of 1.2972 on Wednesday. Bulls got underpinned after the UK’s Office for National Statistics reported the yearly Consumer Price Index (CPI) at 7%, significantly higher than the market consensus of 6.7% and the previous print of 6.2%. This raised the fourth rate hike expectations by the Bank of England (BOE). Apart from that, Core CPI also landed higher at 5.7%, which hinted that the UK households are facing the heat of higher energy bills and food prices.

Meanwhile, the US dollar index (DXY) is holding above the psychological support of 100.00 and is expected to elevate gains after overstepping Thursday’s high at 100.76. The DXY is climbing higher backed by sky-rocketing US inflation and a tight labor market. This has not only bolstered the rate hike expectations but hawkish guidance from the Federal Reserve (Fed) in its May monetary policy.

Going forward, investors will focus on speeches from Fed Chair Jerome Powell and BOE’s Governor Andrew Bailey, which are due on Thursday. A highly uncertain market environment is going to be featured and the market participants will witness wider ticks and above-average volumes on the counter.