GBPUSD has been strengthening for the second consecutive trading session; the statistics support the pair.
The British Pound is still growing against the USD on Wednesday. The current quote for the instrument is 1.3569.
According to the data published earlier today, the CPI in the United Kingdom showed 5.5% y/y in January against the expected reading of 5.4% y/y. The Core CPI y/y went from 4.2% y/y to 4.4% y/y.
The RPI y/y was 7.8% y/y in January after being 7.5% y/y the month before. The PPI Input added 0.9% m/m in January after losing 0.2% m/m in the previous month and against the expected reading of 1.0% m/m. The PPI Output expanded by 1.2% m/m against the expected reading of 0.6% m/m.
Inflation in the United Kingdom remains quite aggressive. This might be a signal for the Bank of England to raise the rate again. If market expectations match the reality, it could be the third consecutive rate hike – something that hasn’t happened to the British regulator for a very long time.
Overall, the situation with the interest rate is now quite clear and investors see no intrigue here.