Pound down on low CPI
GBP/USD quickly dipped to $1.6930 on disappointing UK inflation data. British May CPI came out at 1.5% vs. 1.7% expected. The market took the data as an argument contra an earlier than expected rate hike.
Meanwhile, Commerzbank strategists maintain a bullish view on the pair above $1.6890. “Chance for a growth to 1.7330 (50% retracement from 2007 peak) increased”, analysts say.
Chart. H1 GBP/USD