The Greenback strengthened against the British Pound, following the United Kingdom Consumer Price Index release on Wednesday at 08:30 GMT. The GBP/USD currency pair lost 11 pips, or 0.08%. Right after the data release the main currency pair had a significant downtrend, but luckily, the main currency pair recovered itself to continue fluctuating in the 1.2710 area.
The Office for National Statistics released Consumer Price Index data that came in line with expectation of 2.5%. This is considered the UK's most important inflation data because it's used as the central bank's inflation target, which means that it is important for traders to follow this data to stay aware of currency valuation because rising prices lead the central bank to raise interest rates.
The senior economist at the Institute of Directors, Tej Parikh, said: "For households this isn't good news, as the already weak growth in their pay packets is being further eroded by high prices. This is likely to weigh down consumer spending, posing fresh problems for embattled high street businesses ".
| Historical Data Table: CPI y/y | Economic Calendar for 16.08.2018 | ||||||||
| Date | 18.04.2018 | 23.05.2018 | 13.06.2018 | 18.07.2018 | 15.08.2018 | 12:30 PM | CA Manufacturing Sales m/m |
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| Actual | 2.50% | 2.40% | 2.40% | 2.40% | 2.50% | 12:30 PM | US Building Permits | ||
| Forecast | 2.70% | 2.50% | 2.40% | 2.60% | 2.50% | 13:30 PM | UK CB Leading Index m/m | ||
| Initial Reaction on Main Pairs | SWFX Sentiment Indexes | ||||||||
| Open Price | Close Price | % Change | Longs | Shorts | |||||
| GBP/USD | 1.27168 | 1.27161 | -0.01% | GBP/USD | 68.27% | 31.73% | |||
| EUR/GBP | 0.89114 | 0.89113 | 0.00% | EUR/GBP | 29.98% | 70.02% | |||
| GBP/CAD | 1.66217 | 1.66257 | 0.02% | GBP/CAD | 51.94% | 48.06% | |||
| GBP/JPY | 141.51 | 141.521 | 0.01% | GBP/JPY | 72.34% | 27.66% | |||