As the UK CPI shock fades into stabilization, the GBP/USD falls from its highs. Cable traders are assessing the Fed and the Bank of England, as well as the dangers posed by Covid. As the greenback falls and markets reprice central banks, the GBP/USD is trading on the bid by 0.4 percent from a low of 1.3801 to a high of 1.3891. First and foremost, the pound rose versus the greenback as a result of higher-than-expected UK inflation figures. Continue reading…
The GBP/USD pair reached a high of 1.3891 before settling in the 1.3860 price range. Despite the broad dollar’s fall, the pair fell from highs as conflicting UK data and concerns over the coronavirus dampened demand for the pound. The country released June inflation numbers early in the day, with the Consumer Price Index up 2.5 percent year on year. In the same month, producer prices decreased, but the Retail Price Index increased by 3.9 percent. Continue reading…
After the UK revealed higher-than-expected inflation statistics, the GBP/USD has started recovering. Following the release of the US CPI and a lackluster bond auction, Fed Chair Powell’s testimony is trending left, right, and center. The four-hour chart for Wednesday shows a mixed picture. After both the US and the UK reported higher-than-expected price increases, the idea that inflation is ubiquitous has gained traction. However, on both sides of the Atlantic, transitory factors are boosting the increases, and what counts is what policymakers think about it. Continue reading…/n
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