Inflation data in the UK

• Consumer Price Index (CPI) in the UK (y / y), fact 2.5%, 2.5% forecast.
• Consumer price index (CPI) in the UK (m / m), fact  0.0%,  forecast  -0.1%.
• Producer Producer Producer Price Index in the UK (m / m), fact 0.5%, forecast 0.1%.

The  inflation report in the UK for July was very optimistic. The main index of the UK CPI remained at the forecast level.

Fig. 1. Graph of the CPI of Great Britain 

The dynamics of the British pound remains restrainedly negative, which is caused by the preservation of risks relative to Brexit and the growth of negative sentiment in the market. Despite the positive opening of the European stock exchanges, pessimism on the market remains. Rising risks are associated with a slowdown in the development of emerging markets and, as a result, investors prefer to invest in safe assets.

The pair GBP/USD is limited by a downtrend and resistance levels: 1.2740 and 1.2780. Support is located at the levels: 1.2640 and 1.2600.

Fig. 2. GBP/USD chart

Read also: “The Economy of Japan  in the Conditions of a Long Ultra-Soft Monetary Policy”

Hanzenko Anton

Earn with the help of the trade service on the news Erste News!

Topical articles of the trader’s blog:

1. Medium-term prospects for the US dollar for August-September
2. Emerging markets and their prospects: Chinese yuan (CNH or CNY)
3. Stock indices: the Japanese market

Current Investment ideas:

1. Preparing to have profits on an optimistic report of Alcoa Inc.!
2. On weak reporting of Boeing shares we can get a strong income!