GBPUSD Recoups Losses After CPI Miss But Rising Wedge Suggests It Could Still Drop
Despite worse-than-expected inflation data from the UK, GBPUSD still managed to finish yesterday’s trading in the green. The currency fell to an intraday low of 1.2984 after initially trading at 1.3041 when the CPI reading for December printed at 1.3%. This figure was below the forecast at 1.5% and, more importantly, marks a three-year low for British inflation. The core CPI reading, which excludes volatile items, also missed the 1.7% consensus when it came in at 1.4%. However, GBPUSD was quick to recover its losses and steadily traded higher to close the day at 1.3036, up by 21 pips from its opening price.
According to the Office for National Statistics, the drop in consumer prices was weighed down by a fall in hotel rates and women’s clothing.
Lower inflation figures tend ...