News Column

Pound Advances As UK CPI Rises More-than-expected

July 15, 2014

BRUSSELS (Alliance News) - The pound advanced against the other major currencies in the early European session on Tuesday, as the nation's consumer price inflation rose more-than-expected in June.

Data from the National Statistics showed that UK Consumer prices rose 1.9% in June from last year. A similar rate of increase was last seen in January and this was the fastest since December 2013. Inflation was forecast to rise moderately to 1.6% from 1.5% in May.

Month-on-month, consumer prices gained 0.2%, confounding expectations for a 0.1% fall. Prices declined 0.1% in May.

The pound rose to a 1- week high of 1.5304 against the Swiss franc, from an early low of 1.5216. At yesterday's close, the pound was trading at 1.5234 against the franc.

Having fallen to an early low of 0.7979 against the euro and a 4-day low of 173.26 against the yen, the pound advanced to 5-day highs of 0.7934 and 174.08, respectively. The pound was quoted at 0.7968 against the euro and 173.43 against the yen at yesterday's close.

Against the US dollar, the pound rose to a 4-day high of 1.7144 from an early 2-week low of 1.7058. The pair closed yesterday's deals at 1.7081.

If the pound extends its uptrend, it is likely to find the resistance around 0.78 against the euro, 1.72 against the greenback, 174.86 against the yen and 1.53 against the franc.

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Source: Alliance News

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