GBP/USD rallies and approaches 1.3100 on high UK-US inflation data By christianborjon GBPUSD Majors Inflation UnitedStates UnitedKingdom
weighed by inflationary measurements weighing on the greenback. At the time of writing, the GBP/USD is trading at 1.3098.
In the meantime, on Wednesday, prices paid by producers in March rose 11.4% y/y, the most since 2010, above all estimations and emphasizing inflation is stickier than expected, as producers are about to pass costs to customers. Excluding volatile items like food and energy, the so-called core PPI rose 9.2% y/y, higher than the 8.8% foreseen, in contrast to the last core CPI report, which showed that inflation might be near peaking.
Elsewhere, the UK economic docket also featured inflation figures, led by the Inflation Rate for March, which expanded by 7%, in line with expectations but higher than the March 6.2%, the highest in 30 years.