Pound Sterling flattens against US Dollar ahead of UK CPI data
- The Pound Sterling gives up early gains against the US Dollar, while Moody’s downgraded the US sovereign debt keeps the US Dollar on the backfoot.
- China accused the US of undermining the recent trade talks after Washington warned about using Huawei AI chips across the world.
- The UK secures a “reset” agreement with the EU after signing trade deals with India and the US.
The Pound Sterling (GBP) surrenders initial gains and flattens around 1.3365 against the US Dollar (USD) during North American trading hours on Tuesday. The GBP/USD pair turns flat as the US Dollar recoups early losses, with t holds above the 20-day Exponential Moving Average (EMA), which trades around 1.3280, suggesting that the near-term trend is bullish.
The 14-day Relative Strength Index (RSI) points in the upper boundary of the 40.00-60.00 range. A fresh bullish momentum would appear if the RSI breaks above 60.00.
On the upside, the three-year high of 1.3445 will be a key hurdle for the pair. Looking down, the psychological level of 1.3000 will act as a major support area.
Economic Indicator
Core Consumer Price Index (YoY)
The United Kingdom (UK) Core Consumer Price Index (CPI), released by the Office for National Statistics on a monthly basis, is a measure of consumer price inflation – the rate at which the prices of goods and services bought by households rise or fall – produced to international standards. The YoY reading compares prices in the reference month to a year earlier. Core CPI excludes the volatile components of food, energy, alcohol and tobacco. The Core CPI is a key indicator to measure inflation and changes in purchasing trends. Generally, a high reading is seen as bullish for the Pound Sterling (GBP), while a low reading is seen as bearish.