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GBP/USD – Pound Flat as British CPI Meets Expectations

GBP/USD is flat on Tuesday, as the pair trades in the mid-1.56 range. On the release front, British CPI edged above the forecast, posting a gain of 1.3%. In the US, the Producer Price Index posted a gain of 0.2%, beating expectations.

On Tuesday, the UK released a host of inflation indicators, led by CPI, the primary gauge of consumer inflation. There were no surprised, as all of the indicators met expectations. The index improved to 1.3%, just above the estimate of 1.2%, which was the reading last month. Although the increase was marginal, it ended a streak of three straight readings where CPI has weakened.  The pound shrugged off the readings, and remains close to 14-month lows. Last week, the BoE Inflation Report was unexpectedly dovish, resulting in the pound tumbling over 100 points.

US inflation numbers have been persistently weak, but the news was good on Tuesday, as PPI beat expectations with a modest gain of 0.2%. This marked a 4-month high and beat the estimate of -0.1%. Core PPI, which excludes the most volatile items counted in PPI, posted a gain of 0.4%, above the forecast of 0.2%. This was the index’s best showing since April. We’ll get a look at consumer inflation data on Thursday.

GBP/USD for Tuesday, November 18, 2014

GBP/USD November 18 at 16:45 GMT

GBP/USD 1.5649 H: 1.5679 L: 1.5631


GBP/USD Technical

S3 S2 S1 R1 R2 R3
1.5392 1.5505 1.5644 1.5717 1.5864 1.6000


Further levels in both directions:


OANDA’s Open Positions Ratio

GBP/USD ratio is almost unchanged on Tuesday, continuing the trend we have seen since the start of the week. This is consistent with the lack of activity displayed by GBP/USD. The ratio is pointing to a majority of long positions, indicative of trader bias towards the pound moving higher.


GBP/USD Fundamentals

* Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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