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Sterling slips near 1.3495 after July CPI matches forecasts
After UK CPI came in line, GBP remained under pressure, with price holding above key 1.3400 moving averages for a 10-session streak.
Sterling traded near 1.3495 after a London session that initially pushed toward the July high just under 1.3550 before reversing, leaving the currency down by not quite 0.1% on the day, according to FXStreet.
FXStreet said the technical backdrop includes converged 50-day and 200-day exponential moving averages just above 1.3400, which have crossed back with the faster average on top, and price has held above both averages for ten sessions. The daily Stoch RSI was around 63 and rising.
On the data front, the July UK CPI release matched forecasts on every line at 12:30 GMT, with inflation of 0.1% month over month and 3.4% year over year on the headline, and 0.2% month over month and 2.5% year over year on the core measure, both annual readings a tenth below June.
FXStreet added that the breakdown showed shelter doing roughly two thirds of the monthly work, while energy remained close to 15% higher versus a year earlier, and that UK CPI did not trigger a reversal despite sterling having fallen for several hours before the print. The piece also pointed to the wider fiscal backdrop, including a UK-linked shift in rate expectations tied to gilt pricing, with the 10-year yield near 5% since the leadership change.