The Pound is growing based on the statistics. Overview for 17.01.2017

On Tuesday afternoon, the GBP/USD pair continues the movement it started yesterday, but the most interesting things are ahead.

The British Pound is growing against the USD on Tuesday. The current quote for the instrument is 1.2165. yesterday, the pair updated its local bottom at 1.1983.

Today’s statistics showed that the Inflation Rate in the United Kingdom added 1.6% y/y in December after being 1.2% in the previous month and against expectations of 1.4% y/y. The Core Inflation Rate, the indicator that excludes volatile goods, improved better than expected as well, by 1.6% y/y. The Retail Price Index expanded by 2.5% y/y last month against expectations of 2.3% y/y and the HPI added 6.7% y/y over the same period.

The PPI Input increased by 1.8% m/m after losing 0.6% m/m in November. The PPI Output, in its turn, added 0.1% m/m, the same as in the previous month.

The British inflation in December turned out to be the highest since July 2014. It means that the conservative policy of the Bank of England combined with the revival of domestic demand made it once again. In response to the statistics, the Pound moved to the upside.

However, the Pound is highly unlikely to stop its movement for today. A bit later, Theresa May, the Prime Minister of the United Kingdom, is going to deliver a speech. She is expected to speak about the Brexit, the migration policy, and trade relations with other European countries. London is very sensitive about all these issues, that’s why the GBP/USD pair may become extremely volatile.

RoboForex Analytical Department