U.K CPI Data Effect

Chương 20 U.K CPI Data Effect

U.K CPI: The U.K CPI YoY Came at 11.1% more than expected by 1% & more than the Previous Result by 0.4%

Summary:

The U.K economy showed strong volatility following the release of the CPI data on 16-11-2022 at 11:00 AM (GMT +4) with a result of 11.1%. A bullish fundamental signal is already there for the Pound.

1. Fundamentals

The U.K CPI report for October is released on November 16, 2022. The CPI is one of the major monthly indicators that affect the market widely, it measures the change in the price of goods from a consumer perspective, and it is a key to monitoring inflation. A higher-than-expected data is bullish for the dollar, and lower-than-expected data is bearish for the dollar. The data came out at 11.1% which is an increase of 0.4% from the previous result and by 1% from the expected result. If everything went as expected bulls will interfere and a major increase in GBPUSD will be noted.

GBPUSD is expected to rise to the 1.2030 level breaking the resistance level, but it is expected to recover or further increase in the upcoming days affected by the interest rate decision for December by the FOMC, the interest rate in Europe, U.S – China tensions, and the overall world political situation.

Major traders are holding their positions on GBPUSD for further increases in the prices.

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