The Pound is about to face more sales. Overview for 15.08.2017

The GBP/USD pair is falling on Tuesday; reports on the British PPI made investors feel suspicious.

The British Pound continues falling against the USD today. The current quote for the instrument is 1.2856.

The statistics published on Tuesday indicated that the CPI got stabilized in July, but the components of the report made the market feel nervous. The Core Inflation was 2.4% y/y in July against the expected reading of 2.5% y/y. The Inflation Rate was 2.6% y/y, the same as in June.

The PPI Input didn’t change in July, although it was expected to add 0.4% m/m. The PPI Output expanded by 0.1% m/m after staying the same in June.

What is wrong here if the market continues selling the Pound? Well, nothing. The CPI was expected to get more stable; further growth of the inflation seems to be difficult and bad for consumers. The weak reading of the PPI may be explained by the small demand during the summer period.

Mostly, the Pound is being pressured by the USD, which is getting stronger later in the afternoon influenced by excellent Retail Sales reports – they are the best since the beginning of the year.

RoboForex Analytical Department