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Headline inflation in the UK remained at -0.1%. However, core CPI edged up to 1.1%. The RPI slipped to 0.7%. All figures are year over year.

This sent GBP/USD towards 1.52, jumping around 30 pips. However, this trend  isn’t really strong.

PPI Input is up 0.2% as expected m/m, PPI  Output is flat, the  House Price Index (HPI) is up 6.1%, stronger than 5.4% expected.

The UK was expected to report a drop of 0.1% in headline CPI in October, just like in September. Core CPI carried expectations for a rise 1%, unchanged, and the Retail Price Index was expected to rise 0.9% after 0.8% beforehand.

GBP/USD was leaning lower, mostly due to the strengthening US dollar, and traded around 1.5170.

This is the soft spot for  Britain: despite rising wages and other positive UK indicators, the Bank of England certainly expressed worries about inflation.

The greenback has been on a roll, rising and ignoring not so good figures such as  retail sales and  the NY manufacturing index. Today we have a more important release from the US: inflation data.

In our latest podcast we discuss the December decision driving  the dollar,  declining oil and more:

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