The Sterling traded lower against the USD and the decline in value was not helped with reports coming out in the evening that show the RICS House Price Balance coming in worse than expected. However, it should be pointed out that the downturn in the GBP did come largely before the numbers were published and the Sterling merely traded in range afterwards. Meaning that the dollar centric phenomena, that has been a large segment of all the major currencies was the more significant factor in all likelihood. CPI data will be brought forth in the U.K. today along with Trade Balance figures. The Inflation Report Hearings are now tentatively set for this Friday. The Sterling has had a strong month of gains versus the USD, but yesterday’s results should remind market participants that trading is not a one way avenue.
Written by bforex.com