The GBP/USD pair is trading with a downturn on Tuesday after the inflation report from the Bank of England. On Tuesday, the British Pound did not stay at week highs because of the block statistics released by the Bank of England and the statistical department of UK.
So, the order of numbers is as follows. The base value in inflation in the UK in September was 1.0% against the forecast of 1.1% y/y. By itself, the consumer price index last month was -0.1% m/m (0% y/y). Monthly the retail price index declined in September by 0.3%. Yearly is grew by 0.8% against expectations of growth of 1.0%.
The index of wholesale manufacturer prices last month dipped by 1.8% y/y, in line with expectations. At least something turned out to be on a par with expectations, though grim. The index of purchase prices in September has fallen by 13.3% y/y.
In general, the inflation report from the British regulator had absolutely no positives. The lack of productive changes in the consumer price index will force the BoE to refrain from revising interest rates for at least another couple of months. The earliest, when the BoE will now be able to make a decision on the rate increase is the end of the second quarter of 2016. Even if inflation will be revived due to seasonal factors in December, it will need to be given time to stabilize and consolidate.
For the pound, this publication was a blow to optimism. Now the goal of the "bears" in the GBP/USD pair is 1.52.