The GBP/USD pair drifted upwards after the latest UK inflation data and after the government announced plans to ease Covid restrictions.
The UK entered Plan B measures in November as the number of Covid-19 cases rose. Now, Boris Johnson, the embattled Prime Minister, has laid out plans to reopen the country. In a statement, he said that the country will end these restrictions on January 27th in a move that was supported by most businesses.
The end of Plan B measures means that the government will stop asking people to work from home. It will also not require people to wear masks in public. The announcement came at a time when the number of new cases has started to fall. Over 3.4 million people were infected with Covid-19 last week. That was a lower number than the previous week’s 4.3 million cases.
The GBP/USD also tilted higher after a stream of positive data from the UK. On Tuesday, data by the Office of National Statistics showed that the country’s unemployment rate declined from 4.2% in October to 4.1% in November. The economy has added thousands of jobs while the number of claimants has fallen.
On Wednesday, the UK published the latest consumer inflation data. The numbers revealed that the country’s headline CPI rose from 5.1% in November to 5.4% in December. Core inflation, which excludes the volatile food and energy prices, rose from 4.0% to 4.2% in December. These numbers were better than what most analysts were expecting.
The GBP/USD pair rose ahead of the important Philadelpia Fed manufacturing index data that will come out later today. Other key numbers to watch today will be the US initial jobless claims data and existing home sales numbers.The four-hour chart shows that the GBP/USD pair declined sharply on Tuesday as the US and UK bond yields jumped.shown in black. Now, the pair has bounced back and moved slightly above this trend line. It has also moved to the 25-day and 50-day moving averages.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
GBP/USD Forex Signal: Sterling Ripe for a ComebackThe GBP/USD pair came under pressure as investors prepared for the upcoming economic numbers from the UK.
Read more »
GBP/USD Forex Signal: Sterling Sell-Off Not Over YetThe $GBPUSD has been under intense pressure in the past few days. Will you still trade this market? Get our daily signal here
Read more »
EUR/USD Forex Signal: Bearish Flag Signals Strong PullbackThe EUR/USD pair attempted to stage a comeback as US bond yields retreated.
Read more »
Alaska senators oppose voting rights bill, signal support for narrower moveU.S. Sens. Lisa Murkowski and Dan Sullivan joined other Republicans in opposing the legislation, but said they supported changing the Electoral Count Act.
Read more »
EUR/USD Forex Signal: Consolidation Likely TodayThe price is close to a key support level at $1.1387.
Read more »
BTC/USD Forex Signal: Bitcoin at Risk of Further WeaknessThe BTC/USD pair remained under pressure even as the closely watched North American Bitcoin Conference kicked off in Miami.
Read more »