For the 24 hours to 23:00 GMT, the GBP declined 0.32% against the USD and closed at 1.3045, as UK’s consumer price inflation slowed to a 3-year low level in December.
On the macro front, UK’s consumer price inflation slowed to 1.3% on an annual basis in December, increasing the probability for interest rate cuts this month and compared to a level of 1.5% in the previous month. Moreover, the retail price index rose 2.2% on an annual basis in December, less than market consensus for an advance of 2.3%. In the prior month, the index had registered a similar rise. Meanwhile, the nation’s house price index climbed 2.2% on an annual basis in November, surpassing market anticipations for a rise of 1.2%. In the prior month, the index had registered a revised advance of 1.3%.
In the Asian session, at GMT0400, the pair is trading at 1.3048, with the GBP trading marginally higher against the USD from yesterday’s close.
Overnight data showed that UK’s RICS house price balance advanced to a level of -2.0% in December, surpassing market expectations for a rise to a level of -10.0%. The house price balance had recorded a revised reading of -11.0% in the previous month.
The pair is expected to find support at 1.3003, and a fall through could take it to the next support level of 1.2959. The pair is expected to find its first resistance at 1.3075, and a rise through could take it to the next resistance level of 1.3103.
Amid lack of economic releases in the UK today, traders would focus on global macroeconomic events for further direction.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
