Pound Sterling Advances Against US Dollar After Soft US CPI Data
The Pound Sterling (GBP) jumps to near 1.3240 against the US Dollar (USD) during North American trading hours on Tuesday (15/05). The GBP/USD pair strengthens as the US Dollar falls back after the United States (US) Consumer Price Index (CPI) report showed that inflationary pressures cooled down in April. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, retraces to near 101.40 from its monthly high around 102.00 posted on Monday.
The US headline CPI rose by 2.3% year-on-year, slower than estimates and the March reading of 2.4%. In the same period, the core CPI - which strips off volatile food and energy prices - grew steadily by 2.8%, as expected. On month, both headline and core CPI rose moderately by 0.2%, compared to estimates of 0.3%.
Soft CPI data is unlikely to drive Federal Reserve (Fed) dovish bets higher as officials are still concerned about inflation moving higher despite the US and China have agreed to lower tariffs for a 90-day period.
Source: FXStreet
