GBP/USD is marching towards 1.3270 amid risk-on impulse, US CPI eyed

• Pound bulls are underpinned as investors cheered the much-awaited compromise between Russia and Ukraine.
• Investors are now focusing on US CPI numbers.
• The risk-on impulse has faded the safe-haven appeal.

The GBP/USD pair has rebounded from Wednesday’s low at 1.3080 as investors cheered the much-awaited compromise between the Kremlin and Kyiv. Ukraine has agreed to the stipulations of Moscow and is ready for a diplomatic solution to halt the deaths and destruction in Ukraine. This has brought a strong reversal in the undertone of the market as investors were dumping the risk-sensitive assets earlier on the escalation in geopolitical tensions while the demand for safe-haven assets was skyrocketing.

The cable was heavily dumped by the market participants on the prohibition of Russian oil for imports. The US levied a ban on Russian oil on the US ports. While the British determined to phase out the imports of Russian oil by the end of 2022. The prohibition of Russian oil may not hamper a nation like the US, which produces oil itself and does not bank heavily on imports from Russia. However, a nation like the UK, which heavily relies upon oil imports from Russia will face major turmoil in shuffling the suppliers going forward.

Meanwhile, the US dollar index (DXY) has been hit hard after the safe-haven assets lose their appeal. The DXY plunges below 98.00 despite the rising expectations of an aggressive interest rate decision by the Federal Reserve (Fed) in its March monetary policy.

It seems that bulking expectations of a ceasefire between Russia and Ukraine will shift the focus of investors towards US Consumer Price Index (CPI) numbers, which are due on Thursday. The US CPI is likely to land at 7.9% , higher than the prior figure of 7.5%.