The consumer price index in the UK rose by 2.7% at an annual level during November, the same as in October. A slide to 2.6% was expected.
While this is within the 1-3% target range, it makes the task of the BOE a tad more complicated, as the economy is still sluggish. The question of more QE remains open. GBP/USD is now at the highest since late September, but it is capped by very strong resistance.
Cable continued its gradual rise and reached 1.6228 before edging a bit lower. It is above the October peak of 1.6217, but under 1.63. Will it challenge this level before the year ends?
For more, see the GBPUSD forecast.
The retail price index rose by 3% annually, lower than 3.2% that was expected. Core CPI remained unchanged at 2.6% and PPI Input rose by 0.1% as expected.
GBP/USD remains rangebound, as do quite a few currency pairs. Recently, cable got a lift from the appointment of Mark Carney as BOE Governor. However, the rest of the economy doesn’t look good.
