On Tuesday, the GBP/USD pair is trading upwards; investors are buying despite the statistics.
The British Pound continues growing on Tuesday. The current quote for the pair is 1.4476.
A lot of quite interesting British statistics was published today. It’s rather complicated, but investors are choosing by themselves what to reach to.
So, the CPI increase in the UK was weaker than expected. The indicator increased only by 0.3% y/y against 0.5% y/y the month before, in March. The core inflation in the country in April increased by 1.2% against the predicted number of 1.4% and 1.5% previously. The indicator, which excludes volatile goods, is quite informative, although it doesn’t include the movement of prices on food products, fuel, and other excise goods.
At the same time, one should pay attention to the act that the PPI Output in April decreased, but it was the slowest decrease over the last 18 months. It reduced by 0.7% and the market connected at once this fact with discussions that the inflation may resume growing significantly soon.
According to expectations of the Bank of England, the CPI might get back to the target of 2% in the middle of 2018. The English regulator is very careful and will not take any resolute actions until it sees stable rates of growth of all major macroeconomic parameters.
RoboForex Analytical Department
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