Pound Falls Despite Upbeat UK Inflation Data and Positive US Prints

The  Sterling pound today fell against the  US dollar despite the  release of  upbeat UK inflation data in  the  early London session. The  GBP/USD currency pair fell at  a  crucial support level, which has been cited by  most analysts as  the  main reason for  the  pair’s decline.
The  GBP/USD currency pair today fell from an  opening high of  1.3022 in  the  early London session to  a  low of  1.2923 in  the  American session and  was trading near these lows at  the  time of  writing.
The  currency pair traded sideways at  the  start of  today’s session before spiking higher in  the  late Asian session. The  release of  the  UK consumer price index report for  January by  the  Office for  National Statistics drove the  pair to  its daily highs. The  UK’s monthly CPI print came in  at  -0.3% beating expectations by  0.1%, while the  annualised print came in  at  1.8% versus the  consensus estimate of  1.6%. The  country’s retail price index also came in at -0.4% beating analysts’ estimates set at -0.6%. The lack of progress by the European Union on a joint negotiating stance combined with Boris Johnson‘s insistence on  the  December deadline also dragged the  pair lower.
The  release of  upbeat US housing starts and  building permits data by  the  Census Bureau also compounded the  pair’s wars. The  positive US producer price index released by  the  Bureau of  Labor Statistics also drove the  pair lower.
The  cable’s future performance is likely to  be influenced by  tomorrow’s UK retail sales report, Brexit headlines and  US macro reports.
The  GBP/USD currency pair was trading at  1.2926 as  at  17:32 GMT having fallen from a  high of  1.3022. The  GBP/JPY currency pair was trading at  143.66, having risen from a  low of  142.83.

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