The Pound is correcting. Overview for 17.02.2021
After updating its highs, GBPUSD is falling despite some positive statistics.
On Wednesday afternoon, the British Pound is retreating against the USD after rallying the day before. The current quote for the instrument is 1.3881.
Update of the previous high required a quick correction and that’s what is exactly happening in GBDUSD right now.
In the meantime, the United Kingdom has published a lot of interesting numbers that can’t go unnoticed. For example, the CPI showed 0.7% y/y in January against the expected reading of 0.6% y/y. The Core CPI showed 1.4% y/y after being 1.2% y/y the month before.
The Bank of England was absolutely right when decided just to watch and wait for the indicator to balance by itself – this stance always paid off.
The PPI Input was 0.7% m/m in January after being 0.8% m/m in December. The PPI Output added 0.4% m/m after expanding by 0.3% m/m in the previous month.
In general, the statistics are quite positive: the price pressure in the United Kingdom is slowly rising, which means that the Bank of England may continue monitoring the economic situation in the country without making any abrupt moves.