Sterling Trades Flat Ahead of U.K.’s Inflation Data, 20+ PIP Volatility Likely; June 16, 2021
U.K. Inflation Results
Today U.K. will come up with the CPI, Core CPI, PPI Input and PPI output data at 0600 GMT/1130 IST. Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the Central Bank to raise interest rates out of respect for their inflation containment mandate. Here the average price of various goods and services are sampled and then compared to the sampling done a year earlier. The Core data has a mild impact relative to other countries because overall CPI is the Central Bank’s mandated inflation target.
Let’s see how GBP has reacted during the previous data release:
- The Sterling trades flat ahead of U.K.’s Inflation Data.
- The pair made intraday high at $1.4085 and low at $1.4076 mark.
- A day chart suggests up trend but H1 chart with triple EMA suggests bearish trend for the time being.
- A sustained close above $1.4105 on H1 chart will check key resistances.
- Alternatively, a consistent close below $1.4041 will check further supports.
Take a look and do trade wisely!