The Pound Sterling (GBP) gains sharply against the majority of its peers on Wednesday as data from the United Kingdom (UK) Office for National Statistics (ONS) showed inflation accelerated more than expected in October. The Consumer Price Index (CPI) report showed that the annual headline inflation quickened to 2.3% YoY, higher than estimates of 2.2% and the September reading of 1.7%.

Compared with the previous month, headline inflation rose sharply by 0.6%, higher than expectations of 0.5% and after remaining flat in September. The core CPI – which excludes volatile items such as food, energy, oil, and tobacco – grew by 3.3%, higher than the former reading of 3.2%. Economists had expected core inflation to fall to 3.1%. Read more...

(Click on image to enlarge)

GBP/USD Forecast: Pound Sterling looks to push higher after UK inflation data

GBP/USD trades in positive territory slightly above 1.2700 early Wednesday as markets assess latest inflation readings from the UK. The pair's near-term technical picture highlights a buildup of recovery momentum.

The UK's Office for National Statistics reported that annual inflation in the UK, as measured by the change in the Consumer Price Index (CPI), climbed to 2.3% in October from 1.7% in September, surpassing the market expectation of 2.2%. Additionally, the Core CPI, which excludes volatile food and energy prices, rose 3.3% in the same period, up from 3.2% in September. On a monthly basis, the CPI increased 0.6% after staying unchanged in September. Read more...

(Click on image to enlarge)

More By This Author: