GBP/USD (a 4-hour chart)
The British pound GBPUSD was little changed, trading at $ 1.5654 compared to $ 1.5658.
The British pound looked weak on the foreign exchange market. During the European session, it reached 1.5571 dollars, setting a minimum of August of last year. However, sales of pounds were suspended after the release of statistics on the UK.
In particular, it was reported that consumer prices in the UK in January 2013. rose by 2.7% compared to the same period a year earlier, according to the report of the country's National Bureau of Statistics. MoM in January, consumer prices fell by 0.5%, while analysts expected a 0.4% decline.
In December last year, according to revised data, inflation on an annualized basis was 2.7%, as previously reported in the country. Thus, inflation in the UK has remained at the highest level since May 2012.
Meanwhile, industrial prices in the UK rose at an annual rate in January to 2%. This also coincided with the expectations of experts. With comparison to December 2012., industrial prices in January rose by 0.2%. According to specified data, in December last year industrial prices in the UK rose by 2.2% year and decreased by 0.1%, as previously reported.
The Producer Price Index, which measures the price changes of goods bought sold directly from factories, is a key indicator for determining future inflation at the consumer level.
Thus, we can say that prices in the UK are growing quite strongly. Consumer inflation of 2.7% is an unprecedented indicator for most of the developed countries. But the price in British industry cannot boast such a rate increase. This situation puts the Bank of England to a standstill. Its actions to mitigate the monetary policy impact on the cost of the consumer basket, but do not lead to an acceleration of growth in industrial prices. It is a mixed picture for pound, the Bank of England may start the limitation of ultrasoft policy that hasn’t brought to the desired results yet.