On Tuesday, the GBP/USD pair is rising fast under the influence of the British inflation report.
The British Pound is “gaining weight” actively on Tuesday afternoon after they published the CPI report. The current quote for the GBP/USD pair is 1.3266.
The statistics published today showed that the CPI in the United Kingdom expanded up to 2.9% y/y in August after being 2.6% y/y the month before and against the expected reading of 2.8% y/y. The Core Inflation Rate increased from 2.4% y/y to 2.7% y/y.
The PPI Input added 1.6% m/m in August after losing 0.2% m/m in the previous month. The PPI Output increased by 0.4% m/m, which is better than the expected and the previous reading.
The Retail Price Index also improved pretty well. In August it was 3.9% y/y after being 3.6% y/y in July.
The statistics turned out to be pretty impressive. If the inflation goes up, then the economy is feeling well, as long as the CPI is within reasonable limits. The better the reports before the Bank of England meeting this Thursday, the more chances the results of the meeting will be positive. The Pound is feeling quite confident and the demand may push the GBP/USD pair towards 1.3300.
RoboForex Analytical Department
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.