GBP/USD maintains position above 1.3300 after strong gains, focus turns to key UK, US data

• GBP/USD may lose ground as the British Pound (GBP) faces headwinds from cooling employment and moderating wage growth in the UK.
• The US Dollar came under pressure following softer-than-expected US inflation data.
• Trump said that he is working to improve US access to Chinese markets and characterized US-China relations as "excellent."

GBP/USD is trading around 1.3300 during Wednesday's Asian session, stabilizing after posting over 1% gains in the previous session. However, the pair's upside may be capped as the British Pound (GBP) faces headwinds from cooling employment and moderating wage growth in the UK, factors that could reinforce expectations for further interest rate cuts by the Bank of England (BoE).

This week, market participants are bracing for heightened volatility in the Pound Sterling, with the release of the UK's preliminary Q1 GDP and Industrial and Manufacturing Production data on Thursday. The UK economy is forecast to have grown by 0.6% in the first quarter.

The recent strength in the GBP/USD pair was also driven by a weaker US Dollar (USD), which came under pressure following softer-than-expected US inflation data. Attention now shifts to upcoming US economic releases, including the Producer Price Index (PPI) and the University of Michigan's Consumer Sentiment Survey, both due later this week.

April's US Consumer Price Index (CPI) rose 2.3% year-over-year, slightly below March's 2.4% gain and market forecasts. Core CPI, excluding food and energy, increased by 2.8% annually, in line with both the previous month and expectations. On a monthly basis, both headline and core CPI climbed 0.2%.

In political developments, US President Donald Trump told Fox News he is working to expand US access to Chinese markets and described US-China relations as "excellent." Trump also signaled a willingness to hold direct talks with President Xi Jinping in pursuit of a broader trade agreement.