U.K. inflation data

• Consumer Price Index (CPI) (y/y) (oct), fact 1.5%, forecast 1.6%.
• Consumer Price Index (CPI) (m/m) (oct), fact -0.2%, forecast -0.1%.
• Producer price index of producers (m/m) (oct), fact -1.3%, forecast -1.2%.

Consumer inflation in the UK in October slowed more than expected, strengthening concerns about the UK economy and confirming them.

Fig. 1. UK Consumer Price Index (CPI) Chart

At the same time, the British pound reacted very restrained, showing moderate growth against the American dollar, which is associated with a general increase in risks and a decrease in the US currency. General dynamics of the pound remains restrained downward, which is associated with a clear slowdown in the UK economy. GBP/USD is limited by lateral dynamics, restrained after the decline. Resistance levels: 1.2880 and 1.2900, support: 1.2820 and 1.2800.

Fig. 2. GBP/USD chart

Read also: “Boris Johnson leads the UK to a hard Brexit”

Hanzenko Anton

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