British CPI, released each month, is the primary gauge of consumer inflation. A reading which is higher than the market forecast is bullish for the pound. Update: UK inflation remains at 0% – GBP/USD slides Here are all the details, and 5 possible outcomes for GBP/USD. Published on Tuesday at 9:30 GMT. Indicator Background Analysts consider CPI one of the most important economic indicators, and an unexpected CPI reading can have a significant effect on the direction of GBP/USD. Inflation in the UK continues to drop, and CPI has now softened for four consecutive months. In February, the index dropped to 0.0%, within expectations. No change is expected in the March report, but if CPI slips into negative territory, the pound could take a hit. Sentiments and levels GBP/USD plunged last week, even without stellar US numbers. Will the greenback’s rally continue? UK inflation is in a nosedive, and the BOE seems in no hurry to raise interest rates, which would boost the pound. US employment data rebounded nicely last week following the dismal NFP report and market sentiment on the US economy remains strong. So, the overall sentiment is bearish on GBP/USD towards this release. Technical levels, from top to bottom: 1.5008, 1.4813, 1.4621, 1.4521, 1.4346 and 1.4227. 5 Scenarios Within expectations: -0.3% to +0.3%. In this scenario, GBP/USD could show some slight fluctuation, but it is likely to remain within range, without breaking any levels. Above expectations: +0.4% to +0.8%: A stronger reading than predicted could push the pair above one resistance line. Well above expectations: Above +0.8%: An unexpectedly sharp rise could push GBP/USD upwards, with a second line of resistance at risk. Below expectations: -0.8% to -0.4%: A lower than expected reading could pull the pair downwards, with one support level at risk. Well below expectations: Below -0.8%: 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 USD: They Think It’s All Over…Far From It – BNPP Yohay Elam 7 years British CPI, released each month, is the primary gauge of consumer inflation. A reading which is higher than the market forecast is bullish for the pound. Update: UK inflation remains at 0% - GBP/USD slides Here are all the details, and 5 possible outcomes for GBP/USD. Published on Tuesday at 9:30 GMT. Indicator Background Analysts consider CPI one of the most important economic indicators, and an unexpected CPI reading can have a significant effect on the direction of GBP/USD. Inflation in the UK continues to drop, and CPI has now softened for four consecutive months. In February, the index dropped… 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.
