- Brexit-deal hopes continue to support GBP/USD
- UK macro data ignored.
- Fed decision and Brexit updates eyed.
GBP/USD remains unaffected by the surprise fall in the UK headline CPI by 0.1 Percent MoM in November, below the consensus estimate of 0.1 Percent rise; the yearly inflation also dragged with an increase of only 1.1 Percent, below 1.4 Percent expected and down from 1.5 Percent earlier.
The core CPI, which excludes food and energy items, also disappointed market expectations while the Producer Price Index came in a tad better than the consensus.
The GBP/USD ignored the disappointing numbers and focused on the Brexit developments to stay above mid-1.3400s.
The pair has consolidated in yesterday’s Asian session and then rallied by 190 pips.
The US dollar trades near two-and-half-year lows as US stimulus hopes are up, but traders are awaiting FOMC later in the US session before taking any aggressive bets.
Market participants eye the Flash UK PMI prints and the US monthly Retail Sales data for further direction in the pair ahead along with Brexit developments and Fed policy updates.
At the time of writing, one British Pound buys 1.3501 dollars, up 0.37% as of 9:51 AM UTC.