Pound Superstar

Helen Rush
Helen Rush
Senior Analyst – Capital Markets •

UK reported stronger than expected retail price index, PPI, CPI and DCLG House Price index. Moreover, Consumer Price Index showed the gathering pace rising to 2.9%.

UK reported stronger than expected retail price index, PPI, CPI and DCLG House Price index. Moreover, Consumer Price Index showed the gathering pace rising to 2.9%.

We need to mention that whenever CPI number exceeds 3.0% target, the BOE chairman is have to write a letter to Prime Minister to explain the situation. And the regulator won't like this tendency at all. So, the chances the BOE dares to tighten monetary policy soon are growing.

And in such a case the first pair to rise is GBP/USD. It already touched 1.3297 high nearing  strong resistance level around 1.33. And on Wednesday, we may get another reason to buy pound, as labor data is released.

Better than expected number may help GBPUSD to break the round level higher with initial target at 1.3370, not seen since July, 2016.

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