The Pound is slowly recovering. Overview for 11.04.2017

The GBP/USD pair has been growing for the third consecutive trading session; the statistics published by the UK is pretty mixed.

On Tuesday afternoon, the British Pound continues moving to the upside against the USD. The current quote for the instrument is 1.2444.

The CPI in the UK added 2.3% y/y in March, which is a little bit better than expected, but the same as the February reading. The Core CPI added 1.8% y/y, thus matching expectations. The PPI Input added 0.4% m/m after losing 0.1% m/m in the previous month. The PPI Output also added 0.4% m/m, which is better that the February number.

So, the British inflation is still growing as the CPI has been moving to the upside for eight months in a row and reached the target of the BoE at 2%. The March growth is based on the rise in the prices of food products and clothes along with some particular beverages. It’s important to note that the prices of food products are growing faster than in any other period over the last three years.   

A bit earlier, Mark Carney, the Governor of the Bank of England, said that the fact that the inflation broke the target of 2% was rather okay in case it would improve the country’s economy. Taking into account the Brexit procedure, which may last for at least two years, the growth of the inflation is unwanted, but there aren’t many tools that can prevent it.

RoboForex Analytical Department