GBPUSD moved away from its lows but investors need good news to continue buying.
The Pound sterling took a break against the USD on Wednesday. The current quote for the instrument is 1.2403.
The United Kingdom continues to release the statistics, this time on prices. For example, the CPI showed 9.0% y/y in April, which is better than expected (9.1% y/y) but worse than the March reading (7.0% y/y). The Core CPI was 6.2^ y/y last month, the same as expected, after being 5.7% y/y in March.
The PPI Input gained 1.1% m/m in April after adding 4.6% m/m the month before and against the expected reading of 1.0% m/m. The PPI Output showed 2.3%, twice as much as expected.
The RPI skyrocketed up to 11.1% y/y – the previous and expected readings are 9.0% y/y and 11.0% y/y respectively.
Analysing all these price numbers, one can draw the following conclusion: The United Kingdom is facing a significant inflation boost, which may yet continue in the upcoming months. after that, everything will depend on the external background, prices of energy and staple food products in the first place. In addition, there are questions to the Bank of England.
The GBP enthusiasts have been mostly focused on domestic news and signals recently, which, unfortunately, are not very optimistic.