Pound Sterling trades mixed at the start of UK data-packed week

• The Pound Sterling trades mixed against its peers while investors await a string of UK data.
• The UK’s headline CPI is expected to have risen at a faster pace of 3.3% in March.
• Iran refuses to return to the table for another round of talks with the US.

The Pound Sterling (GBP) exhibits a mixed performance against its major currency peers during the European trading session on Monday. The British currency is expected to remain volatile as a slew of United Kingdom (UK) economic data is scheduled to be published this week.

Investors will pay close attention to the UK employment data for THE three months ending February, and the Consumer Price Index (CPI) and Retail Sales data for March to get fresh cues on the Bank of England’s (BoE) monetary policy outlook.

The UK employment data on Tuesday is expected to show that the Average Earnings Excluding Bonuses, a key measure of wage growth, rose at a moderate pace of 3.5% Year-on-Year (YoY) against the previous reading of 3.5%. The ILO Unemployment Rate is seen as steady at 5.2%.

The inflation report on Wednesday will likely demonstrate a strong growth in the headline CPI by 3% YoY, against 3% in February, in the wake of higher energy prices due to the war in the Middle East. On Friday, the UK Retail Sales, a key measure of consumer spending, is estimated to have risen 0.2% on a monthly basis after declining 0.4% in February.

Meanwhile, the recent commentary from BoE Governor Andrew Bailey, in the International Monetary Fund (IMF) last week, suggests that the central bank will hold interest rates steady in the policy meeting on April 30. Bailey said that there is “no rush” for monetary policy adjustments despite a negative energy shock.

This week, investors will also focus on the preliminary UK S&P Global Purchasing Managers’ Index (PMI) data for April, which will be released on Thursday.

Against the US Dollar (USD), the Pound Sterling recovers a majority of its early losses and rebounds to near 1.3515. However, the outlook of the GBP/USD pair remains uncertain amid uncertainty surrounding the occurrence of another round of talks between the United States (US) and Iran.

Iran's foreign ministry spokesperson Esmail Baghaei said during the day that there is “no plan for a second round of negotiations with the United States (US) for now.