About 10:30 we got to know a very long list of readings from the British economy, which concerned producer and consumer inflation, real estate prices, the full list is presented below:
The most important publications were related to consumer inflation CPI YoY and MoM, which in September was ranked at favourable levels. The full inflation report prepared by the ONS can be found over here.
CPI increased by 1.0% compared to 0.6% in August. Reading was the highest since November 2014, when the inflation were at the same levels. The main rising factors were prices of clothing, hotel services and fuels.
Historically, inflation all the time is on multi years lows falling to the levels observed during the strongest decline after the economic crisis:
Reaction to GBP
Pound sterling during Tuesday’s session comes back above the support/ resistance level 1.2200, readings have led to draw long candle on the graph H1 with a range of almost 50 pips. The appreciation tested twice today tops from the session on October 13 1.2270 area. Dynamic rejection of increases, show evidence of a continuing strength of demand. In a broader perspective on the GBPUSD the direction is still down.