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.
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:Get the 5 most predictable currency pairs