U.K. CPI & Core CPI Data
U.K. is going to publish CPI as well as core CPI data around 0600 GMT/1130 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. Along with CPI data, U.K. will also release PPI input, PPI output and RPI data. If actual data releases higher than expected, GBP will appreciate against major peers.
Let’s see how GBP has reacted during the previous data release:
GBP/USD: The sterling trades marginally higher and hovers around $1.29 mark ahead of U.K.’s CPI, core CPI data. A sustained close above $1.2888 will drag the parity up towards $1.2930, $1.3002, $1.3070, $1.3102, $1.3148, $1.3210, $1.3276, $1.3350, $1.3382, $1.3422, $1.3442 and $1.3515 mark respectively. Key support levels are seen at $1.2875, $1.2820, $1.2762, $1.2740, $1.2695, $1.2662 and $1.2620 mark respectively.
Take a look and do trade wisely!