U.K. Inflation Data
U.K. is going to release 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 inflation data, U.K. will release PPI input, PPI output data and RPI data too. As all data released together, there are more possibility of mixed economic data.
Let’s see how GBP has reacted during the previous data release:
GBP/USD: The sterling firms against U.S. dollar and remains well supported above $1.31 mark. The pair hits highest level since December 2019. A sustained close above $1.3238 will drag the parity up towards $1.3289, $1.3322, $1.3378, $1.3442 and $1.3515 mark respectively. Key support levels are seen at $1.3226, $1.3141, $1.3092, $1.3048, $1.3009, $1.2950, $1.2838 and $1.2775 mark respectively.
Take a look and do trade wisely!