- Brexit deal is expected by next week.
- Better CPI readings help the pound.
- US housing data awaited.
GBP/USD didn’t react much to the better than expected UK consumer inflation figures and held steady with a slight gain for the day – above mid-1.3200s.
The data released by the UK Office for National Statistics showed a flat headline CPI in October against an expectation of 0.1 Percent fall. The yearly and core CPI figures also recorded better reading than expected.
Reports suggesting Brexit-deal by the start of next week support the GBP/USD along with a softer tone in the USD. The greenback’s haven-appeal has fewer takers as the positive test results from coronavirus vaccines soothed nerves.
Nevertheless, market participants await further confirmation regarding the Brexit deal before placing aggressive bullish bets on the sterling. The investor worries are well recognized as negotiators haven’t reached an agreement in the key contentions surrounding the fisheries and level-playing field.
Traders await the US Building Permits and Housing Starts for fresh triggers today, besides the coronavirus updates to dictate the trading direction in the pair.
At the time of writing, one British Pound buys 1.3292 US dollars, up 0.37% as of 9:43 AM UTC.