The British pound sterling is still ascending against the US dollar. The current exchange rate for GBPUSD stands at 1.2727.
Yesterday’s published statistics revealed a decrease in British inflation. On a year-on-year basis, the Consumer Price Index in April fell to 2.3% from the previous 3.2%. The forecast had anticipated a more significant decline to 2.1% y/y. On a month-on-month basis, inflation rose by 0.3% compared to the previous 0.6%, once again defying expectations and not ruling out the 0.2% increase.
Investors’ reaction to the inflation statistics was not positive. The data suggests that the Bank of England will maintain a wait-and-see stance for now, but by August, it may be ready to begin an easing cycle. These expectations are worse than before: prior to the release of statistics, the market had anticipated a cut in the BoE interest rate as early as June.
It is said on the market that the pound currently needs grounds to stand out among the G-10 currencies. The interest rate in the UK remains at 5.25% per annum. With it staying high, the pound is gaining on this front.
Source: Roboforex