After a couple of days of falling, GBPUSD corrected based on the strong statistics. The British Pound rose against the USD for the first time over the last three trading sessions. The current quote for the instrument is 1.4115. The statistics published earlier this morning turned out to be interesting and quite strong. It seemed to be the reason aby the British currency managed to reverse.
The Consumer Price Index in the United Kingdom showed 2.1% y/y in May after being 1.5% y/y in the previous month and against the expected reading of 1.8% y/y. The Core CPI was 2.0% y/y after being 1.3% y/y the month before. The RPI showed 3.3% y/y in May after being 2.9% y/y in April. The PPI Input was 1.1% m/m, while the PPI Output showed 0.5% m/m – both readings are better than expected.
The price environment is becoming tighter – consumers are back to their normal lives and energy prices are growing each day. The Bank of England is highly unlikely to do anything about it in the nearest future. The regulator’s stance will remain unchanged even if it snows in June: the inflation boost is temporary and everything else will be just as expected.