U.K. CPI & Core CPI Data
U.K. will publish CPI, Core CPI, PPI input and PPI output data around 0700 GMT/1230 IST. Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate. Here the average price of various goods and services are sampled and then compared to the sampling done a year earlier. It Actual data comes higher than expected; it will be good for GBP.
Let’s see how GBP has reacted during the previous data release:
GBP/USD: The pound trades slightly up ahead of U.K. CPI data and stabilizes above $1.3250 mark. Today pair made intraday high at $1.3267 and low at $1.3239 mark. A sustained close above $1.3270 will drag the parity up towards $1.3322, $1.3354 and $1.3382 mark respectively. Key support levels are seen at $1.3222, $1.3170, $1.3122, $1.3090, $1.3054, $1.3002 and $1.2950 mark respectively.
Take a look and do trade wisely!