UK CPI Beats Estimates, GBP/USD Retreats from Intraday High
- U.K. CPI 1.8% y/y in April vs. 1.6% in Mar.
- British Pound Fell vs US Dollar Following Data
- British Pound May Find Resistance at 1.6783
UK CPI reported better-than-expected. The headline year-on-year inflation rate ticked to 1.8 percent, beating expectations calling for a print of 1.7 percent. The month-on-month rate grew 0.4 percent vs 0.3 percent higher in April. Although CPI reported better-than-expected traders will continue to evaluate inflationary trends for clues on interest hikes, one strong print may not be enough to prop up the British pound. UK CPI is of great important to sterling traders since the MPC decided to drop its informal unemployment target of 7 percent as the threshold for a discussion on hiking rates.
Tomorrow the Bank of England Minutes are released, and traders will look through the BoE minutes for information on housing, a recent area of interest for policy makers given the explosive rate of price gains in urban markets.
The British Pound fell following the release of the data report.
GBP/USD 5-Minute Chart. April 15, 2014. Charted created using FXCM Marketscope 2.0.
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-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to firstname.lastname@example.org.
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