GBP/USD reached its two-week highs; the future movements depend on reactions to the statistics.
The pound sterling recovered a bit against the USD. The current quote for the instrument is 1.3222.
The UK released several macroeconomic reports on prices, which might be very interesting because of their direct influence on the BoE’s stance on the interest rates.
The CPI in the UK was 0.8% m/m in February after 0.6% m/m the month before. One might say it’s another slight price surge but the predicted reading was 1.0% m/m. On YoY, the CPI showed 6.2% after being 5.9% in the previous month and against the expected reading of 6.1%.
Both numbers seem like new multi-year highs.
The Core CPI in the UK was 5.2% y/y in February, higher than the forecast 5.1% y/y.
The higher the CPI, the more active and aggressive the Bank of England is expected to be. This month, the regulator already raised the benchmark interest rate by 25 basis points, up to 0.75%. However, the economy might need one more step like this.
As a rule, when it comes to inflation, the British regulator adheres to a very conservative stance and prefers to sit and watch without interfering. In the past, it worked. But what is currently happening to the prices is looking too global.
For the Pound, inflation boost is no news, but it may limit the intraday growth.
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