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Inflation ticks up in the UK: 1.3% y/y instead of 1.2% expected. Core CPI remains at 1.5%, worse than expected. RPI came out at 2.3%, exactly as expected.

GBP/USD is trading higher than just before the release, but is basically  erasing its previous losses. Update: the pair is now extending its gains beyond the previous range and reaching out towards 1.5670.

More  data: HPI is up 12.1%, PPI Input down 1.5% m/m and PPI Output is down 0.3%.

The UK was expected to report a headline inflation rate of 1.2% y/y in October, the same as in September. This is a 5 year low for the Consumer Price Index. Core CPI was expected to tick up from 1.5% to 1.6%. The Retail Price Index (RPI) was expected to remain at 2.3%.

GBP/USD was trading around 1.5645, a bit above the lows.

The  House Price Index carried estimations of rising from 11.7% to 12.1%. PPI Input was predicted to fall 1.4% m/m, reflecting oil prices. PPI Output was expected to drop 0.2%.

Tomorrow we  will get the meeting minutes from the MPC. Will w still see 2 members voting for a rate hike? Or has lower inflation already changed their minds?

On the continent, we soon have the German ZEW Economic Sentiment figure. See how to trade the ZEW number with EUR/USD.