On Wednesday morning, GBPUSD is consolidating and waiting for news.
The British Pound was growing against the USD pretty well yesterday, but this morning investors aren’t so active. The current quote for the instrument is 1.2487.
In general, it’s quite clear why the current activity on the market is low: the two-day meeting of the US Federal Reserve will be over today, while the Bank of England is scheduled to meet tomorrow.
Today, the United Kingdom is going to publish a lot of numbers, which may well result in local fluctuations for the Pound. First of all, the Consumer Price Index, which may drop from 2.1% y/y in July to 1.8% y/y in August. The decline of inflation is not a good signal for the Bank of England, because it indicates lower consumption and business activity. The Core CPI may also fall from 1.9% y/y to 1.8% y/y.
The Producer Price Index Input is expected to lose 0.4% m/m in August after adding 0.9% m/m in the previous month. The Producer Price Index Output may add just 0.1% m/m.
Inflation stability issues may really weaken the Pound, especially when the Bank of England is obviously not ready to loosen its monetary policy.
Orgin: RoboForex
