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22 May 2015
GBP/USD drops sharply after US CPI, BoE Carney speech
FXStreet (Córdoba) - GBP/USD was dragged lower and surrendered completely previous day gains, as the dollar strengthened broadly following upbeat US core inflation data.
US CPI rose by 0.1% in April but fell 0.2% year-over-year. However,excluding volatile food and energy categories, the so-called core inflation, prices climbed 0.3%, posting the largest increase since January 2013, and a 1.8% in the twelve months to April.
GBP/USD fell nearly a hundred pips over the minutes that followed the release and hit a low of 1.5559, retracing completely yesterday’s advance.
Optimistic Carney doesn't help the pound
Meanwhile, BoE Governor Carney was speaking at the ECB conference. Amid main remarks, he said the UK economy should close its economic output gap within the next year, productivity should pick up pace and that much of the recent weakness in inflation is due to food and energy prices.
However, optimistic comments from Carney did little to help the British pound. At time of writing, Cable is trading at 1.5535, now 0.79% below its opening price.
US CPI rose by 0.1% in April but fell 0.2% year-over-year. However,excluding volatile food and energy categories, the so-called core inflation, prices climbed 0.3%, posting the largest increase since January 2013, and a 1.8% in the twelve months to April.
GBP/USD fell nearly a hundred pips over the minutes that followed the release and hit a low of 1.5559, retracing completely yesterday’s advance.
Optimistic Carney doesn't help the pound
Meanwhile, BoE Governor Carney was speaking at the ECB conference. Amid main remarks, he said the UK economy should close its economic output gap within the next year, productivity should pick up pace and that much of the recent weakness in inflation is due to food and energy prices.
However, optimistic comments from Carney did little to help the British pound. At time of writing, Cable is trading at 1.5535, now 0.79% below its opening price.