GBPUSD is still under pressure on Wednesday; the mid-term downtrend continues.
In the middle of the week, the British Pound remains under pressure against the USD. The current quote for the instrument is 1.3390.
The statistics published by the United Kingdom today showed that the CPI slowed down a bit in April and decreased up to 2.4% y/y after being 2.5% y/y in March and the same expected reading. The Core CPI over the same period of time fell up to 2.1% y/y after being 2.3% y/y the month before and against the expected reading of 2.2% y/y.
The RPI added 3.4% y/y, the same as expected, after expanding by 3.3% y/y in March. The PPI Input recovered after the March decline and added 0.4% m/m; the PPI Output increased by 0.3% m/m and matched expectations as well.
It appears that the inflation in the United Kingdom is perfectly controlling itself – the Bank of England didn’t interfere. In this light, neutral results of the previous meeting of the British regulator were fully justified. The Bank of England once again proved to the entire financial world that one shouldn’t make any hasty conclusions without seeing the overall picture.
In this case, the decrease of the inflationary pressure is estimated not as negative factor, but as a signal that the indicators is reaching stability.
RoboForex Analytical Department
