Pound Sterling rises on Russia-Ukraine peace optimism, US-Iran talks awaited

The Pound Sterling (GBP) trades higher against its major currency peers, except other European currencies, edging up to near 1.3444 against the US Dollar (USD) during the European trading session on Friday.

The British currency gains on hopes that Russia and Ukraine could reach a peace deal after a four-year long bloodiest war. A Bloomberg report showed that a senior adviser to Ukrainian President Volodymyr Zelenskyy said that Ukraine is close to reaching a peace deal with Russia.

Separately, the Kremlin said that there can be peace with Ukraine today if President Zelenskyy makes the decision. A top official from the Kremlin has also stated that Russia wants peace, not a ceasefire.

Theoretically, signs of easing geopolitical tensions improve demand for riskier assets.

Meanwhile, investors await scheduled talks between the United States (US) and Iran, which will be over the weekend in Pakistan. Both nations are expected to negotiate on terms in the 10-point peace plan proposed by Iran for a permanent ceasefire.

On the macro front, investors await the US Consumer Price Index (CPI) data for March, which will be published at 12:30 GMT. Investors will closely track the inflation data as it will reflect the impact of elevated oil prices.

The US CPI report is expected to show that the headline inflation accelerated to 3.3% Year-on-Year (YoY) from 2.4% in February. On a monthly basis, the headline inflation is expected to have grown at a faster pace of 0.9% against the previous reading of 0.3%.