How Did CPI Affect The Pound?

How Did CPI Affect The Pound?

2023-10-20 • Updated

The Consumer Prices Index including owner occupiers' housing costs (CPIH) is the most comprehensive measure of inflation in the UK. It extends the Consumer Prices Index (CPI) by including owner occupiers' housing costs (OOH) and Council Tax, both significant household expenses not covered by the CPI. The CPI is a widely used inflation measure and is used in the government's inflation target. The Retail Prices Index (RPI) is still published but does not meet the required statistical standards, and changes are planned to integrate CPIH into RPI by 2030. In September 2023, the annual RPI inflation rate was 8.9%. Additionally, the UK Statistics Authority provides tools like a personal inflation calculator and shopping prices comparison to help individuals understand how inflation affects their spending.

GBPUSD - D1 Timeframe

GBPUSDDaily-2010.png

After reacting from the trendline support on the daily timeframe chart as seen above, GBPUSD broke the internal structure and now seems to have completed a retest of the drop-base-rally demand zone that overlaps the trendline. In this case, my expectation is to see a continuation of the bullish movement with the 50-Day moving average as my target.

Analyst’s Expectations: 

Direction: Bullish

Target: 1.23410

Invalidation: 1.20881

GBPAUD - D1 Timeframe

GBPAUDDaily-2010.png

GBPAUD in like manner as was seen on the GBPUSD chart has also reacted from the trendline. The current pullback, however, appears to be aimed at retesting the demand zone that overlaps the trendline support. In line with this expectation, I will patiently wait for price to approach the demand zone before seeking an entry.

Analyst’s Expectations: 

Direction: Bullish

Target: 1.92325

Invalidation: 1.88514

GBPJPY - D1 Timeframe

GBPJPYDaily-2010.png

GBPJPY on the daily timeframe is quite tedious to read, owing to the multiple internal structures to the left of the chart. In this particular case, I will rely on the bullish array of the moving averages as well as the reaction from the trendline support as the basis for my bullish sentiment.

Analyst’s Expectations: 

Direction: Bullish

Target: 184.064

Invalidation: 180.891

CONCLUSION

The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.

TRY TRADING NOW

You can access more trade ideas and prompt market updates on the telegram channel.

Similar

USD: CPI Carries The Dollar to Pivots
USD: CPI Carries The Dollar to Pivots

The higher-than-expected inflation data for January has reignited concerns about rising prices and its implications for Federal Reserve policy. While investors had anticipated rate cuts in the near term, the hot inflation print may delay such actions. As the Fed navigates the delicate balance between containing inflation and...

The January US CPI and Its Impact on EURUSD
The January US CPI and Its Impact on EURUSD

Today, Tuesday, February 13th, at 8:30 am New York time, the Bureau of Labor Statistics (BLS) releases US inflation data related to the Consumer Price Index (CPI). This data, considered high-impact, could generate significant changes in the perception of...

USD: Critical Levels To Watch Ahead of CPI
USD: Critical Levels To Watch Ahead of CPI

The US Dollar Index (DXY) has been in a consolidation phase since early February, displaying minor signs of weakening last week. Despite this, the USD continues to find support around the 104.00 mark on dips, indicating a general resilience. Analysis suggests that the USD may currently be overvalued in the short term when considering various factors

Latest news

AUD: Trade Ideas
AUD: Trade Ideas

Last Tuesday, the Australian dollar experienced its steepest drop of the year, falling by 1.18%, following higher-than-expected US inflation figures, which boosted the US dollar. However, the Aussie has since rebounded and is now trading at a two-week high against the US dollar. Investors are...

NZD: The Week Ahead
NZD: The Week Ahead

Commerzbank's analysis suggests a brighter outlook for the New Zealand Dollar (NZD) in the coming months despite recent downward pressure. Factors like broader U.S. Dollar strength and domestic issues have kept the NZD below last year's highs. However, robust labor markets in both New Zealand and Australia and an expected...

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera