TheÂ Sterling pound today traded lower against theÂ US dollar following theÂ release ofÂ theÂ UK Consumer Price Index report forÂ May inÂ theÂ early European session. TheÂ GBP/USD currency pair later rallied higher from theÂ mid-European session into theÂ North American session asÂ theÂ US dollar weakened against theÂ pound.
TheÂ GBP/USD currency pair initially declined from anÂ opening high ofÂ 1.3375 toÂ aÂ low ofÂ 1.3307 before rallying toÂ aÂ new high ofÂ 1.3383 inÂ theÂ American session.
TheÂ currency pair was onÂ aÂ downtrend from theÂ Asian session following overnight jitters regarding theÂ fate ofÂ Britain’s EU withdrawal bill. TheÂ pair headed lower after theÂ Office forÂ National Statistics released theÂ latest CPI data. TheÂ headline CPI print came inÂ atÂ 0.4% inÂ May translating into anÂ annualized 2.4% print, which was slightly lower than theÂ expected 2.5% figure. TheÂ core CPI print was recorded atÂ anÂ annualized 2.1%, which was inÂ line with expectations. TheÂ producer price index report, also released today, beat consensus estimates byÂ aÂ large margin onÂ both aÂ monthly andÂ annualized basis. TheÂ retail price index missed expectations byÂ aÂ slight margin.
TheÂ pair rallied higher inÂ theÂ American session despite theÂ US producer price index released byÂ theÂ Bureau ofÂ Labor Statistics beating consensus estimates.
TheÂ currency pair’s short-term performance is likely toÂ be affected byÂ theÂ FOMC rate decision scheduled forÂ 18:00 GMT today, andÂ theÂ accompanying dot-plot followed byÂ theÂ Federal Reserve Chairman Jerome Powell‘s speech.
TheÂ GBP/USD currency pair was trading atÂ 1.3381 asÂ atÂ 16:49 GMT having rallied from aÂ low ofÂ 1.3307. TheÂ GBP/JPY currency pair was trading atÂ 147.78 having risen from aÂ low ofÂ 147.19.
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