The pound showed mixed trading against its major counterparts in the European session on Wednesday, after a data showed that nation’s producer inflation came in below expectations in December.
Data from the Office for National Statistics showed that output price inflation unexpectedly slowed to 14.7 percent from 16.2 percent a month ago. Economists had forecast prices to gain at a faster pace of 16.4 percent.
Input price inflation moderated to 16.5 percent in December from 18.0 percent in November. Prices were expected to climb again by 18.0 percent.
Month-on-month, output prices dropped 0.8 percent, following a 0.1 percent fall in the prior month and in contrast to the 0.3 percent expected growth. This was the lowest monthly rate since April 2020.
On a monthly basis, input prices fell 1.1 percent, faster than the 0.2 percent decrease a month ago and also the forecast of -0.6 percent.
The pound dropped to 5-day lows of 159.50 against the yen and 1.1342 against the franc, from its early highs of 160.93 and 1.1397, respectively. The pound is seen finding support around 156.00 against the yen and 1.11 against the franc.
The pound recovered to 1.2337 against the greenback and 0.8815 against the euro, after falling to 1.2283 and an 8-day low of 0.8852, respectively in early deals. Next key resistance for the pound is likely seen around 1.25 against the greenback and 0.86 against the euro.
The material has been provided by InstaForex Company – www.instaforex.com
- Treasuries See Further Downside Ahead Of Next Week's Fed Meeting - January 27, 2023
- *U.S. Consumer Sentiment Index Upwardly Revised To 64.9 In January - January 27, 2023
- *U.S. Pending Home Sales Jump 2.5% In December - January 27, 2023