Ticker
Last
High
Low
Daily Change (pip)
Daily Range (pip)
GBP/USD
1.3266
1.3288
1.3161
103
127
The British Pound outperforms its major counterparts following a pickup in the U.K. Consumer Price Index (CPI), with GBP/USD at risk of staging a larger advance should the Bank of England (BoE) alter the outlook for monetary policy.
Even though the BoE is widely anticipated to retain the current stance at the September 14 meeting, a growing number of central bank officials may argue ‘the withdrawal of part of the stimulus that the Committee had injected in August last year would help to moderate the inflation overshoot while leaving monetary policy very supportive’ as price growth is expected to hold above the 2% target throughout the policy horizon. In turn, Governor Mark Carney And Co. may increase their efforts to prepare U.K. households and businesses for higher borrowing-costs, and the British Pound may continue to gain ground over the next 24-hours of trade especially as the U.K. Jobless Claims report is anticipated to show Average Hourly Earnings picking up for the third consecutive month in July.
Keep in mind, the BoE meeting minutes are likely to reveal a 7 to 2 split within the central bank as Sir David Ramsden joins the Monetary Policy Committee (MPC).
GBP/USD Daily Chart
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