• The Pound Sterling trades in a narrow range of around 1.2730 and remains feeble as investors shift focus to the monetary policy decisions by the Federal Reserve and the Bank of England. The Fed is expected to keep interest rates unchanged in the range of 5.25%-5.50%. Investors will keenly focus on the dot plot, which indicates policymakers’ expectations for interest rates over time. 
• Fed policymakers projected three rate cuts this year in December's dot plot. The Fed could revise these projections as consumer and producer inflation has been stubborn in the first two months. If the Fed projects fewer rate cuts, the appeal for the US dollar would strengthen. The US Dollar Index (DXY) has started the week on a flat note, trading lackluster around 103.45.
• On the other side of the Atlantic, the BoE is also expected to hold interest rates unchanged at 5.25% for the fifth straight time. The victory over inflation in the United Kingdom is far from over, as wage growth momentum is significantly higher than what is required to bring inflation down to the 2% target. Out of the nine policy committee members, MPC member Swati Dhingra is expected to support a rate-cut decision.    
• Before the BoE decision, the Pound Sterling will dance to the tunes of the Consumer Price Index (CPI) data for February, which will be published on Wednesday. The annual core CPI, which strips off volatile food and energy prices, is forecasted to have decelerated to 4.6% from 5.1% in January. The monthly headline CPI is expected to have grown by 0.7% after declining by 0.6% in January. 
• Soft inflation data could deepen expectations that the BoE will cut rates in the August policy meeting, while hot figures will likely dampen these expectations.