GBP Strengthens On Positive CPI

Wednesday, September 19 – London Session Recap

In today’s London session, the main event was UK CPI for August. The report was overall positive with all four measures exceeding expectations.

Headline CPI printed at 2.7% Y/Y versus consensus of 2.4% and at 0.7% M/M versus consensus of 0.5%. Core CPI printed at 2.1% Y/Y versus consensus of 1.8% and at 0.8% M/M versus consensus of 0.5% and maximum expectation of 0.7%.

Following the report, GBP strengthened across the board with GBPUSD breaking above the 1.32 handle. Since the report, however, GBP has pulled off of its best levels with GBPUSD back below the 1.32 handle.

Elsewhere, the overall risk tone remains positive. Commodity-linked currencies remain well supported with AUD and NZD the strongest currencies on the day.

For additional research, we’ve posted news articles from around the web below.