The GBP/USD pair is falling; bears are moving to reach April’s lows.
On Tuesday, the British Pound is falling against the US Dollar. The current quote for the pair is 1.4167.
The United Kingdom published a very interesting statistics today. It indicated that the CPI in May improved by 0.3%, the same as expected. The core inflation (the indicator excluding volatile goods) added 1.2% last month against the expected number of 1.3%.
At the same time, the RPI in the UK in May increased by 1.4% against 1.3% the month before. The PPI in May added 0.1% after improvement of by 0.3% in April.
So, the inflation remained positive. The core indicator has been positive for quite a long time, because it doesn’t take into account energy cost parameters. However, the stabilization of the CPI and the stable plus look nicely and quite unusual. The components of the inflation report show that transport expenses along with average total bills in cafes and restaurants increased, while food products prices reduced a little bit. It appears that the current growth of the inflation is connected with momentary fluctuations and not likely to be stable.
The British Pound has barley responded to the statistics. Investors are still focused on the Brexit event. The closer the date of June 23rd
, the more nervous they get.
RoboForex Analytical Department
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