British CPI is the primary gauge of consumer inflation in the UK . A reading which is higher than the market forecast is bullish for the pound. Update: UK CPI falls to 1.6% – GBP/USD extends falls Here are all the details, and 5 possible outcomes for GBP/USD. Published on Tuesday at 8:30 GMT. Indicator Background Analysts consider CPI one of the most important economic indicators, and the release of the British CPI can affect the direction of GBP/USD. The level of inflation is an important component in any decision by the BOE to raise interest rates, which would be bullish for the pound. CPI posted a gain of 1.9% last month, close to the 2.0% target of the BOE. This beat the forecast of 1.6%. Little change is expected in the upcoming release, with an estimate of 1.8%. Sentiments and levels The markets received a rude surprise from the BOE Inflation Report, with the central bank downgrading its forecast for wage growth. BOE Governor Mark Carney sent a message to the markets that any rate hike would be “slow and small”. Meanwhile, in the US, a rate hike is likely by mid-2015 or earlier, and increasing speculation about a move by the Fed is bullish for the dollar. Thus, the overall sentiment is bearish on GBP/USD towards this release. Technical levels, from top to bottom: 1.7108, 16989, 1.6823, 1.6669, 1.66 and 1.6466. 5 Scenarios Within expectations: 1.6% to 2.0%. In this scenario, GBP/USD could show some slight fluctuation, but it is likely to remain within range, without breaking any levels. Above expectations: 2.1% to 2.4%: A stronger reading than predicted could push the pair above one resistance line. Well above expectations: Above 2.4%: An unexpectedly sharp rise could push GBP/USD upwards, with a second line of resistance at risk. Below expectations: 1.2% to 1.5%: A lower than expected reading could pull the pair downwards, with one support level at risk. Well below expectations: Below 1.2%: In this scenario, the pair could break below a second support level. For more on the pound, see the GBP/USD forecast. To follow this event live: [do action=”calendar-event” eventid=”3ac4e096-06c8-4981-b973-622269563b1f”/] Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher Opinions share Read Next FXTM Announces Forex Trading Cup Contest Winners Yohay Elam 8 years British CPI is the primary gauge of consumer inflation in the UK . A reading which is higher than the market forecast is bullish for the pound. Update: UK CPI falls to 1.6% - GBP/USD extends falls Here are all the details, and 5 possible outcomes for GBP/USD. Published on Tuesday at 8:30 GMT. Indicator Background Analysts consider CPI one of the most important economic indicators, and the release of the British CPI can affect the direction of GBP/USD. The level of inflation is an important component in any decision by the BOE to raise interest rates, which would be… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
