- The annual CPI of Great Britain increased by 2.6% in March compared to 2.7%.
- British inflation dropped to 0.3% in March vs. Respect 0.4%.
- GBP/USD has profits above 1.3250 after CPI inflation in Great Britain.
Annual headline of Great Britain (Great Britain) Consumer price indicator (CPI) increased by 2.6% in March after an boost by 2.8% in February, the data published by the National Statistics Office (ONS) showed on Wednesday.
Market expectations concerned an boost of 2.7% in the reported period. Reading remained much above the target 2% of the Bank of England (Boe).
The basic CPI (excluding unstable food and energy products) increased by 3.4% year -on -year (r.
Inflation of services dropped in March to 4.7% from 5% of February.
Meanwhile, the monthly CPI inflation in Great Britain dropped in March lower to 0.3% from 0.4%. Markets predicted a 0.4%reading.
GBP/USD reaction to CPI inflation in Great Britain
CPI data in Great Britain does not provide further growth Sterlingwith GBP/USD trade by 0.38% higher on 1.3270, from writing.
The price of the British pound today
The table below shows a percentage change in the British pound (GBP) in relation to the main currencies. The British pound was the strongest in relation to the American dollar.
| USD | EUR | GBP | JPy | BOOR | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.76% | -0.31% | -0.70% | -0.20% | -0.33% | -0.37% | -1.19% | |
| EUR | 0.76% | 0.48% | 0.08% | 0.55% | 0.67% | 0.41% | -0.42% | |
| GBP | 0.31% | -0.48% | -0.42% | 0.09% | 0.20% | -0.07% | -0.84% | |
| JPy | 0.70% | -0.08% | 0.42% | 0.51% | 0.70% | 0.40% | -0.51% | |
| BOOR | 0.20% | -0.55% | -0.09% | -0.51% | 0.15% | -0.16% | -0.92% | |
| Aud | 0.33% | -0.67% | -0.20% | -0.70% | -0.15% | -0.29% | -1.01% | |
| NZD | 0.37% | -0.41% | 0.07% | -0.40% | 0.16% | 0.29% | -0.77% | |
| CHF | 1.19% | 0.42% | 0.84% | 0.51% | 0.92% | 1.01% | 0.77% |
The heat map shows percentage changes in the main currencies towards each other. The basic currency is collected from the left, and the quote currency is collected from the upper order. For example, if you choose a British pound on the left column and move along the horizontal line to the American dollar, the percentage shift displayed in the field will represent GBP (base)/USD (quote).
In this section below it was published at 02:15 GMT as a preview of the inflation of the British price indicator (CPI).
- The Great Britain’s office for national statistics will publish the data of the March CPI on Wednesday.
- The annual inflation of British inflation is frosty in March, while Core CPI remains unchanged.
- CPI data in Great Britain can inject variability around the pound of Szterling in the midst of cautious Boe.
Data in consumer price indexes (CPI) in Great Britain (CPI) will be published by the National Statistics Office (ONS) on Wednesday at 06:00 GMT.
The CPI inflation report in Great Britain can significantly affect the market expectations of future bank interest rates (Boe), which could cause a enormous reaction in the pound of Szterling (GBP).
What can you expect from the next inflation report in Great Britain?
The consumer price indicator in Great Britain will boost by 2.7% year -on -year (s) in March, after a 2.8% boost in February.
The reading is expected to remain 2.0%distant from the Boe target.
The basic CPI inflation is expected, which excludes the prices of energy, food, alcohol and tobacco, will boost by 3.5% y / rw March, unchanged since February.
According to the Bloomberg survey on economists, official data show that inflation of services dropped in March lower to 4.8% after staying at 5% in February.
Meanwhile, it is expected that the British monthly CPI will boost by 0.4% in the same period, corresponding to the growth registered in February.
Preview in British inflation data, TD Securities analysts noticed: “We expect inflation will continue to fall in March and the headline is 2.6% (Mkt: 2.7%; earlier: 2.8%). Services are the main driver by 4.7% r / consolation Boe, the trajectory down will be welcome before their May meeting.”
How will the report on the consumer price index in Great Britain affect GBP/USD?
The expected slight reference in British inflation would tidy the Boe path to lower the rates by 25 base points (BPS) to 4.25% at the political meeting on May 8.
Meanwhile, cash markets are valued at 75-100 BPS total rate reduction this year due to the gloomy Great Britain Economic perspectivesThanks to the kindness of the global tariff war.
At the March meeting of monetary policy, Boe maintained interest rates of 4.5%, with the voting template showed 8-1 in favor of the holding rate, while one member voted in favor of limitation.
The bank said in its political statement that “uncertainty of global trade policy has intensified” in recent weeks, citing the US tariffs and other countries’ answers.
That is why the surprise for the main data of inflation would push away from the expectations of further reduction of rates by Boe after potential softening in May. In this case, the Sterling pound will receive a very needed top -up, raising GBP/USD closer to the 1,3300 barrier. And vice versa, modest inflation reads will probably revive the BOEs’ Aggressive Cuts of Aggressive Cuts, which can cause fresh GBP/USD precipitation.
Dhwani Mehta, a leading analyst at the Asian session FxstreetIt offers brief technical perspectives for the major and explains: “GBP/USD fights the 1.3200 barrier, while holding over all the main daily simple average movement (SMA) aimed at UK CPI release. The 14-day relative shoe indicator (RSI) remains above 50. The golden cross is in this because the 50-day SMA is on the edge of the 200-day SMA from below. Technical ones indicators Continue painting a stubborn image for a major in the near future. “
Dhwani adds: “The couple needs acceptance above 1.3250 psychological barriers to expand the increase towards the threshold 1.3300. The next upper goal is even at the highest level of 1,3390 SMA and 200-day SMA, and 20011111111111111111111111111111111111111111111111111111111111 There will be a fresh defect in the 100-day SMA 1,2652.
Frequently asked inflation questions
Inflation measures the boost in the price of a representative basket of goods and services. Header inflation is usually expressed as a percentage change based on month to month (Mom) and year on year (Yoy). Basic inflation excludes more unstable elements such as food and fuel, which can change because of geopolitical and seasonal factors. Basic inflation is the number of economists focus on the level of central banks, which are authorized to maintain inflation at a management level, usually about 2%.
The consumer price indicator (CPI) measures the change in the prices of the basket of goods and services over time. This is usually expressed as a percentage change on the basis of month to month (Mom) and year on year (Yoy). Core CPI is a number directed by central banks because it excludes unstable food and fuel cartridges. When Core CPI increases above 2%, it usually causes higher interest rates and vice versa when it drops below 2%. Because higher interest rates are positive for currency, higher inflation usually causes a stronger currency. On the contrary, it is true when inflation falls.
Although this may seem contrary to intuition, high inflation in the country increases the value of its currency and vice versa for lower inflation. This is due to the fact that the central bank usually raises interest rates to combat higher inflation, which attracts more global influx of capital than investors looking for a lucrative place to park their money.
Earlier, gold was investors of assets, to which he turned to high inflation, because it retained its value, and although investors often buy gold for his protected real estate in times of extreme market riots, this is not the most of the time. This is because when inflation is high, central banks set interest rates to combat it. Higher interest rates are negative in the case of gold because they boost the costs of having gold in relation to assets on interest or place money on the cash deposit account. On the other hand, lower inflation is positive for gold because it lowers interest rates, thanks to which dazzling metal is a more profitable investment alternative.
