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Sterling also shrugged off bad economic data this morning and continued to run higher against the greenback, as trader’s appetite for risk seems to have come back into the market in solid fashion.
Both CPI and Core CPI data in the UK missed the forecast today and fell from previous levels. Core CPI posted a figure of 2.9% and the broader—yet more volatile—CPI reading came in at 3.4%. Normally a drop in these readings would put some downward pressure on the currency, related to the report. However, today it makes a bit of sense that they would not. The readings themselves are still quite high and considering the overall economic conditions in the UK, the last thing anyone wants to see would be climbing consumer prices that could derail any support consumers could give to a recovery.
