UK Inflation Soars AgainThe British Pound has been well bid today following the latest set of inflation figures from the ONS this morning. UK headline CPI was seen surging higher to 7%, year on year, in March. This was a stark jump from the prior month’s 6.2% reading and was well above the 6.7% the market was looking for. Additionally, core CPI (which strips out the more volatile elements such as energy and food prices) was also higher at 5.7% from 5.2% prior, beating forecasts of 5.3%.Along with the steep rise in consumer prices, PPI (prices paid by manufacturers) was also sharply higher. PPI input prices rose to 5.2% in March, up from 1.4% prior and well above the 2% forecast. Higher energy and commodities prices, as well as supply chain issues, have created a very expensive environment for producers, which continues to be passed onto consumers, fuelling the current inflationary environment.Technical ViewsGBPUSDGBPJPY is trading back up to retest the 164.17 level highs following an earlier failure at the level. With the pair finding fresh demand at the 159.98 level, GBJPY is now making a fresh assault on the level and, with both MACD and RSI bullish, and with the retail market heavily short, the focus is on a move up to the 166.72 level next.
Source: Tickmill
