On Wednesday morning, GBPUSD is reaching stability after plummeting the day before; market players are not ready to sell forever.
The British Pound is recovering against the USD on Wednesday after plunging earlier. The current quote for the instrument is 1.2308.
Last night, when the energy commodity market was flooded with panic and sales due to global fears of relatively low demand for energies, investors’ attitude to risks was completely negative. It’s quite clear that the world is in the midst of a global crisis and these sales aren’t obviously over yet. However, there is hope for a short pause.
The statistics published by the United Kingdom in the morning showed that the Core CPI was 1.6% y/y in March after being 1.7% y/y in the previous month. The actual reading matched the expected one and that helped to neutralize market players’ negative response. The CPI showed 1.5% y/y after being 1.7% y/y the month before.
By the way, the inflation target for the Bank of England remains at 2%.
On the other hand, the RPI showed 2.6% y/y, which is better than both previous and expected readings of 2.5% y/y and 2.3% y/y respectively. This indicator is used by the British authorities for calculating and adjusting social payments, such as pensions, benefits, and gilts.
Both the PPI Input and Output showed negative readings, thus implying rather gloomy expectations for the future.
Orgin: RoboForex
