HomeContributorsFundamental AnalysisUK's Consumer Price Index Rose To A 4-Month High In July

UK’s Consumer Price Index Rose To A 4-Month High In July

For the 24 hours to 23:00 GMT, the GBP declined 1.01% against the USD and closed at 1.3112, amid concerns over Brexit and rising inflation.

On the data front, UK’s consumer price index rose 1.0% on a yearly basis in July, marking its highest level in 4-months and driven by higher prices of clothing and petrol. In the earlier month, the index had recorded a rise of 0.6%. Additionally, the retail price index rose more-than-expected by 0.5% on a monthly basis in July, compared to a rise of 0.2% in the previous month. Meanwhile, the output producer price index fell 0.9% on an annual basis in July, in line with market forecast and compared to a similar drop in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.3096, with the GBP trading 0.12% lower against the USD from yesterday’s close.

The pair is expected to find support at 1.3034, and a fall through could take it to the next support level of 1.2971. The pair is expected to find its first resistance at 1.3213, and a rise through could take it to the next resistance level of 1.3329.

Moving ahead, traders would keep a watch on UK’s GfK consumer confidence for August, slated to release overnight.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

GCI Financial
GCI Financialhttp://www.gcitrading.com/
DISCLAIMER : GCI's Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be used as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

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