GBPUSD Movement
For the 24 hours to 23:00 GMT, GBP ended flat against the USD and closed at 1.5096, after UK inflation data that came in line with market expectations, managed to keep the Pound stable.
In the UK, the seasonally adjusted annual consumer price inflation rose to 2.8% in February, whereas the core consumer price inflation held steady at the previous month’s seasonally adjusted rate of 2.3% in February. Also, the producer price inflation input rose to 3.2% (MoM) in February, while output price index, on a monthly basis, rose 0.8% in February. Separately, UK’s DCLG house price index rose 2.2% in January, lower than the expected 2.4% rise and compared to an increase of 3.3% reported in the previous month. Also, the retail price index (RPI) edged up 0.7% to a reading of 247.60 in February, less than market expectations of a rise of 0.8%.
In the Asian session, at GMT0400, the pair is trading at 1.5087, with the GBP trading marginally lower from yesterday’s close.
The pair is expected to find support at 1.5058, and a fall through could take it to the next support level of 1.5030. The pair is expected to find its first resistance at 1.5130, and a rise through could take it to the next resistance level of 1.5174.
Later today, the BoE is to publish the minutes of its February meeting and the UK government is to unveil its annual budget statement, wherein the UK Chancellor, George Osborne is expected announce some fresh measures to boost growth. Moreover, the UK government is also expected to throw some light on the country’s employment scene, wherein the ILO unemployment rate and the claimant count rate are expected to remain stable.
The currency pair is trading just below its 20 Hr and 50 Hr moving averages.
