Sterling Trades Slightly Lower Ahead of U.K’s CPI data, 50+ PIP Volatility Likely in GBP Parity; June 22, 2022
U.K. CPI & Core CPI data
Today U.K. has scheduled to release CPI, Core CPI, PPI Output, PPI Input and RPI data at 0600 GMT/1130 IST. Let’s focus on U.K.’s key Fundamental data – CPI (Inflation) only. 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 starts a new day on a lower note and remains well supported below $1.2250 mark.
- Today pair made intraday high at $1.2280 and low at $1.2234 mark.
- A day chart and H1 chart with triple EMA suggest down trend for the time being.
- A sustained close above $1.2272 on H1 chart will check key resistances.
- Alternatively, a consistent close below $1.2221 will check further supports.
Take a look and do trade wisely!