GBP/USD (current price: 1.2455)
The British CPI came in at an annualized rate of 0.9% yesterday, missing the consensus estimate of 1.1%. The recent weakness of the Pound wasn’t enough to boost inflation, although the monthly PPI beat expectations with a rise of 4.6%. The Pound sterling lost ground in the afternoon, following the release of the better than expected U.S. Retail Sales number. Sales grew by 0.8% in October, while the Empire State Manufacturing Index also beat expectations with a reading of 1.5.
Our assessment: Cable trades below the 1.25 level again after a mixed week. Strong support is found between 1.2325 and 1.2350. Long-term resistance is ahead at 1.2850.
