- UK headlines CPI rises by 0.2% MoM, yearly rate holds steady at 1.5%.
- GBP/USD seemed rather unimpressed amid fears of a no-deal Brexit.
The GBP/USD pair held on to its weaker tone around the 1.3100 round-figure mark and had a rather muted reaction to the latest UK consumer inflation figures.
The British pound moved little after the headline UK CPI came in line with consensus estimates and rose 0.2% MoM in November as compared to a fall of 0.2% recorded in the previous month. The yearly rate held steady at 1.5% during the reported month, beating consensus estimates pointing to a modest downtick to 1.4%.
Brexit jitters might continue to weigh
Meanwhile, the core CPI, which excludes the volatile food, energy, alcohol, and tobacco items, also held steady at 1.7% YoY rate. The positive readings, however, were largely negated by softer Producer Price Index (PPI) figures and hence, did little to provide any meaningful impetus to the major.
This coupled with renewed fears of a no-deal Brexit further held bullish traders from placing any aggressive bets and should keep a lid on any attempted recovery move. It is worth recalling that the UK Prime Minister Boris Johnson confirmed to the parliament that the government seeks to pass legislation that will make it illegal to extend the Brexit transition period beyond the end of 2020.
Technical levels to watch
Share
