The British Pound received only temporary support from the UK data indicating the country's inflation at the six-year high in November. The GBP/USD exchange rate rose 17 pips or 0.12%, but weakened rapidly and failed to sustain the position, continuing trading in the 1.3320 area.
Britain's inflation accelerated growth pace unexpectedly, causing a tighter squeeze of household incomes. The Office for National Statistics stated that consumer inflation hit a yearly rate of 3.1% in November, driven by computer games, air fares and chocolate prices, reflecting the Sterling's plunge after the Brexit vote. The current rate, being more than 1% above the BoE target, would force the Bank's Governor to write a letter about further steps to the UK Finance Minister.
| Historical Data Table: UK Consumer Price Index | Economic Calendar for 14.12.2017 | ||||||||
| Date | 15.08.2017 | 12.09.2017 | 17.10.2017 | 14.11.2017 | 12.12.2017 | 1:30 PM | US Consumer Price Index | ||
| Actual | 2.6% | 2.9% | 3.0% | 3.0% | 3.1% | 7:00 PM | Fed Interest Rate Decision | ||
| Forecast | 2.7% | 2.8% | 3.0% | 3.1% | 3.1% | 7:30 PM | FOMC Press Conference | ||
| Initial Reaction on Main Pairs | SWFX Sentiment Indexes | ||||||||
| Open Price | Close Price | % Change | Longs | Shorts | |||||
| GBP/USD | 1.33541 | 1.33706 | 0.12% | GBP/USD | 53.00% | 47.00% | |||
| EUR/GBP | 0.88229 | 0.8811 | -0.13% | EUR/GBP | 38.29% | 61.71% | |||
| GBP/CAD | 1.71344 | 1.71588 | 0.14% | GBP/CAD | 64.11% | 35.89% | |||
| GBP/JPY | 151.494 | 151.666 | 0.11% | GBP/JPY | 45.71% | 54.29% | |||