The Sterling pound today fell against the US dollar despite the release of upbeat UK inflation data in the early London session. The GBP/USD currency pair fell at a crucial support level, which has been cited by most analysts as the main reason for the pair’s decline.
The GBP/USD currency pair today fell from an opening high of 1.3022 in the early London session to a low of 1.2923 in the American session and was trading near these lows at the time of writing.
The currency pair traded sideways at the start of today’s session before spiking higher in the late Asian session. The release of the UK consumer price index report for January by the Office for National Statistics drove the pair to its daily highs. The UK’s monthly CPI print came in at -0.3% beating expectations by 0.1%, while the annualised print came in at 1.8% versus the consensus estimate of 1.6%. The country’s retail price index also came in at -0.4% beating analysts’ estimates set at -0.6%. The lack of progress by the European Union on a joint negotiating stance combined with Boris Johnson‘s insistence on the December deadline also dragged the pair lower.
The release of upbeat US housing starts and building permits data by the Census Bureau also compounded the pair’s wars. The positive US producer price index released by the Bureau of Labor Statistics also drove the pair lower.
The cable’s future performance is likely to be influenced by tomorrow’s UK retail sales report, Brexit headlines and US macro reports.
The GBP/USD currency pair was trading at 1.2926 as at 17:32 GMT having fallen from a high of 1.3022. The GBP/JPY currency pair was trading at 143.66, having risen from a low of 142.83.
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