GBPUSD pressured as UK inflation sticks; USDCAD eyes BoC

GBPUSD has slipped 0.3% to 1.2420 after UK CPI data showed inflation remained stubbornly high at 8.7% in April, exceeding the expected 8.2%. The persistent inflationary pressures complicate the Bank of England's policy path, as it grapples with balancing price stability and economic growth concerns. Markets are now pricing a 65% chance of a 25bps rate hike at the next BoE meeting. GBPUSD faces immediate support at 1.2380, with resistance at 1.2475. Meanwhile, USDCAD is trading steady at 1.3540 ahead of the Bank of Canada's rate decision. The BoC is widely expected to keep rates on hold at 4.5%, but the accompanying statement will be closely watched for hints on the future policy trajectory. A hawkish tone could lift USDCAD towards 1.3600, while a dovish stance may see the pair test 1.3500 support.