The British pound sterling is seeking reasons to increase against the US dollar. The current GBPUSD quote is 1.2765.
Today’s statistics on British inflation have provided informative insights. Prices in the country have remained higher than expected for four months in a row. This could be a basis for a new interest rate hike. In May, the CPI rose by 8.7% y/y, as before. Core inflation accelerated to 7.1% from 6.8% previously. The core price indicator was expected to drop to 8.4%.
These figures increase the risk of the Bank of England raising the interest rate on Thursday, thereby extending the period of its tightest monetary policy in four years.
The market thinks the economy could dip into a recession before the Bank of England manages to tame the inflation genie back into its bottle.
The GBP, however, is not deterred by the possibility of a recession.
Source: Roboforex