|Claimant Count Change||-1.5K||-5.2K||-10.0K|
|MPC Meeting Minutes||0-0-9||0-0-9||0-0-9|
Good news for the pound! This week the inflation report has managed to draw some attention. The CPI came as expected at 2.8%, just 0.1% higher than last month but still 0.8% over BOE’s target. The PPI though was published at 3.2% with 1.5% over the estimates. These reports had managed to open the eyes of the BOE officials, making them announce that from now on they will take the inflationary risk more seriously.
If this declaration has triggered a reversal in the pound’s downtrend, the retail sales, which surprisingly came 2.1%, sustained the growth.
Next week we are expecting new economic indicators to be published for UK’s economy. Some of them are the Current Account, Final GDP and BOE Credit Conditions Survey.
GBPUSD has moved 0.74% up on the market news and managed to confirm an Inverted Head and Shoulders pattern (See our last analysis on GBPUSD in an Accumulation Area). At this point it looks like it is heading for the next resistance (1.5375) which is also a 38.2 Fibonacci retrace of the down trend.