GBP/USD consolidates its gains above 1.2580, all eyes on US CPI data

• GBP/USD takes a breather near 1.2590 in Wednesday’s early Asian session. 
• The US PPI came in line with expectations, rising by 2.2% YoY in April, compared to the 1.8% increase in March. 
• The UK Unemployment Rate rose to 4.3%, and private-sector wage growth slowed. 

The GBP/USD pair consolidates its gains around 1.2590 during the early Asian session on Wednesday. The major pair holds above the key 100-day Exponential Moving Average (EMA) but remains capped under the 1.2600 hurdle. The US Consumer Price Index and Retail Sales report for April will be in the spotlight. Also, the Fed’s Kashkari and Bowman are due to speak.

Wholesale inflation, as measured by the Producer Price Index (PPI), hit its highest rate in a year, the Bureau of Labor Statistics showed Tuesday. The US PPI figure rose 2.2% on a yearly basis in April, compared to the 1.8% increase recorded in March (revised from 2.1%), and came in line with the estimation. The Core PPI, which excludes food and energy costs, climbed 2.4% YoY in the same period, compared to an increase of 2.1% in the previous reading and matching the expectation. On a monthly basis, the PPI and the core PPI both rose 0.5% MoM in April.