Yesterday, GBPUSD rose by 1.79% after lower-than-expected U.S. Consumer Price Index (CPI) figures.
Possible effects for traders
On Tuesday, the GBPUSD pair strengthened following the mixed employment data from the U.K. and the U.S. CPI reports. Lower-than-expected U.S. inflation numbers caused significant shifts in the global markets, marking some of the most intense movements this year. Contrary to the anticipated 0.1% growth, the U.S. CPI remained unchanged in October. The core inflation rate increased by only 0.2% instead of the expected 0.3% rise. This data sharply contrasted with the forecast, leading to the reassessment of the U.S. rate hike trajectory.
During the early European trading session, GBPUSD declined following the release of lower-than-anticipated U.K. CPI numbers. Today’s key event is the U.S. Producer Price Index (PPI) report due at 1:30 p.m. UTC. If the PPI figures exceed the forecast, GBPUSD could fall below 1.24500. Meanwhile, lower-than-expected PPI figures could support the short-term upward trend in GBPUSD.
