GBP/USD clings to mild losses below 1.2700 ahead of US CPI data

• GBP/USD trades with mild losses around 1.2675 on the consolidation of USD. 
• The Fed’s Goolsbee said it must weigh how much longer it can maintain its current rate stance without damaging the economy.
• The UK’s OBR forecasts the UK economy to grow by 0.8% this year as domestic demand has rebounded. 

The GBP/USD pair trades with a mild negative bias near 1.2675 during the early Asian session on Wednesday. The USD Index (DXY) consolidates just above the 104.00 yardstick amid the cautious mood. Investors await the US Consumer Price Index (CPI) inflation data, along with the speech of Fed’s Bowman and Goolsbee later in the day. 

Some Federal Reserve (Fed) officials offered their hawkish language. Chicago Fed President Austan Goolsbee said on Monday that the recent jobs report was “quite strong”, but the central bank must weigh how much longer it can maintain its current interest rate stance without damaging the economy. Meanwhile, Minneapolis Fed President Neel Kashkari said that the labor market is no longer ‘red hot’ but remains tight. He said his base case is that inflation continues to ease.