The Pound is forced to respond to the statistics. Overview for 17.04.2019

17.04.2019

In the middle of the week, GBPUSD is consolidating and following the numbers. 

The British Pound is trading inside a narrow range and trying to recover against the USD on Wednesday morning.  The current quote for the instrument is 1.3060.

Last night, the Pound went down after the news about problems and pressure the British Prime Minister Theresa May was again facing in the Parliament. Another thing that made the British currency decline was the news relating to the upcoming elections to the European parliament, in which the United Kingdom would have to participate.

Today, the United Kingdom continues attracting attention, this time by means of the statistics. There will be several reports published today, mostly relating to prices. First of all, it will be the CPI, which is expected to reach 2.0% y/y in March after being 1.9% y/y in the previous month. The Core CPI in the country may also improve, from 1.8% y/y in February to 1.9% y/y in March. In this case, the inflation improvement seems like a very positive sign: even considering uncertainty around the Brexit and constant stresses to the country’s economy, the financial system is working without any interferences on behalf of the Bank of England. The regulator’s inflation target is 2.0%, that’s the current reading is fine.

At the same time, market players will get the PPI Input and Output reports (expectations are +0.3% m/m and +0.2% m/m respectively). in case both reports are weaker than expected, the CPI may fall behind 2.0% in the nearest future. 

Later in the evening, the Bank of England Governor Mark Carney is scheduled to speak, but he is very unlikely to mention the regulator’s monetary policy.

Strong inflation numbers will be an excellent support for the British currency. 

Attention!

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.