GBP/USD remains stuck around 1.3200 ahead of Biden’s meeting with its NATO counterparts

• GBP/USD is trading lackluster around 1.3200 as investors await the outcome of the NATO meeting.
• The cable faced intensified selling pressure on higher UK’s CPI print at 6.2%.
• The BOE may resort to a fourth interest rate hike to contain the inflation mess.

The GBP/USD pair is auctioning near bearish Wednesday’s low at 1.3180 as investors await the outcome of US President Joe Biden’s meeting with its NATO counterparts on Thursday. The outcome of the NATO meeting is likely to settle the next phase of the Russia-Ukraine war as the market participants are expecting a diplomatic solution to bring a ceasefire between Moscow and Kyiv.

Apart from that, the European Union (EU) leaders summit will also take place on Thursday in which the EU members will discuss the embargo on Russian oil.

The cable witnessed a steep fall on Wednesday after printing a high near 1.3300 as higher UK inflation numbers soured the mood of investors. The UK’s Office for National Statistics reported the yearly Consumer Price Index (CPI) at 6.2% much higher than the preliminary estimate of 5.9% and prior print of 5.5%. This has raised the odds of an interest rate hike by the Bank of England (BOE) in its May monetary policy. It is worth noting that the BOE has increased its interest rates to 0.75%, elevated interest rates by 25 basis points (bps) three times in a row.

Meanwhile, the US dollar index (DXY) is advancing towards 99.00 despite subdued expectations from the US Markit Manufacturing and Services PMI.  A preliminary estimate for the Market Manufacturing and Services PMI is 56.3 and 56 respectively. The estimates for Market Manufacturing and Services PMI are lower than previous figures of 57.3 and 56.5 respectively.