The Pound hasn’t got any strengths left. Overview for 17.08.2022

GBPUSD remains under slight pressure on Wednesday after the United Kingdom released numbers on inflation.

The Pound Sterling is slowly falling against the USD. The current quote for the instrument is 1.2114.

The British CPI skyrocketed in July and reached 10.1% y/y after being 9.4% y/y in June and against the expected reading of 9.8% y/y. The Core CPI went from 5.8% y/y to 6.2% y/y.

The RPI rose to 12.3% y/y after being 11.8% y/y the month before. The PPI Input/Output gained 0.1% m/m and 1.6% m/m.

Prices are becoming a real problem for the United Kingdom. The Bank of England is highly unlikely to follow the US Fed’s example and start raising the benchmark interest rate aggressively. Market players should expect the British regulator to stick to a classic conservative approach and raise the rate slowly. Of course, it won’t help to solve the inflation issue.

In this light, the GBP may find itself in a risk zone.