GBP/USD: The inflationary shock elevates the pound above the key resistance – What follows?
The United Kingdom inflation surprised the markets in April, jumping to 3.5%, the highest rate since January 2024. The unexpected increase was largely driven by the increase in household bills and persistent inflation in services. This inflationary increase complicates the path of the Bank of England (BOE), generating doubts about the probability of short -term rates cuts and feeding the expectations that rates can remain raised for longer than anticipated. Read more…
GBP/USD forecast: The sterling pound is removed after trying the key resistance in the United Kingdom inflation
The GBP/USD acquired strength in the European morning on Wednesday and rose to its highest level since February 2022 about 1,3470. Although the torque loses traction after the initial increase, the technical panorama suggests that the upward trend remains unchanged.
The National Statistics Office (ONS) of the United Kingdom reported Wednesday that annual inflation in the United Kingdom, measured by the variation of the Consumer Price Index (CPI), rose to 3.5% in April from 2.6% in March. This reading exceeded the expectation of the market of 3.3%. In addition, the CPI increased 1.2% in monthly terms after an increase of 0.3% in March, while the underlying CPI, which excludes volatile food and energy prices, increased 3.8% in annual terms. Read more…
GBP/USD shoots new maximums – more rise after ABC?
The inflation of the United Kingdom came hotter than expected to 3.5% compared to 3.3%which increases the probability that the Bank of England can delay possible cuts of fees. As we know, if inflation exceeds expectations while the feat cuts are still on the table, it runs the risk of further feeding inflation. So the market may be thinking now that the BOE will remain on the sidelines and possibly change to a more aggressive tone.
That is probably for what the pound briefly reached new maximums and even broke new maximums of the year before slightly retreat. Now the question is whether that peak was part of a final diagonal – or perhaps only a leading diagonal – to be an ABC setback before more rise. Read more…
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
