GBP/USD Plunges On Disappointing Inflation Report
FxGrow | Aug 16, 2017 04:51AM ET
GBP/USD Plunges On Disappointing Inflation Report, Eyes on Average Earnings
GBP/USD was tanked yesterday by an unchanged CPI (Inflation) data at 2.6% while market expected a 2.7%+, as a result the pair lost 124-pips value and bottomed at 1.2846 low after receiving another punch by an upbeat U.S Retail Sales at 0.6%. On the other hand, we can see that the DXY is back in game with 94.03 high after a long episodes of drama.
Fundamentally, the positive U.S Data has changed market forecasts for 2017's fed hike with expectations that FOMC meeting tonight can build on it in case Yellen and Co decided to switch from neutral side to a hawkish one.
Shortly now, UK will also release Retail Sales data, Average Earnings and Unemployment Rate, both are considered vital for BOE next decisionor statement with less intensity from CPI, but current situation for GBP/USD is in desperate measure for a lift up. The Data will either make up for yesterday's losses or the cable will dig a deeper hole today as BOE's interest rates will be terminated an time soon and will defiantly set a dovish tone for Carney.
GBP/USD Technical Overview...
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