British consumer prices kept on shrinking in October. This is what the latest official report published by the Office for National Statistics says. More specifically, October’s rate of consumer inflation found itself at -0.1%. The ONS’s report confirms that September’s figures remained unchanged last month. At the same time, the actual figures matched the estimates.
Meanwhile, the level of core inflation accelerated over the reporting period relative to the previous one. In particular, the index advanced by 1.1% relative to 10% seen in September. Month over month, the figures grew by 0.1%, hereby making up for the 0.1% drop seen in September.
All in all, the consumer inflation index has been staying in the red one for 2 months in a row. Still, experts say there are all chances to see another consumer inflation hike in November. The current slowdown can be traced back to November 2014, when oil prices started plunging. In other words, if there is no oil price drop this month, the U.K.’s consumer inflation is going to show some growth.
FOREX
Meanwhile, Masterforex-V Academy reports that the British Pound is trying to recover from the long-term downtrend against the U.S. Dollar even though the bias is still bearish. Specifically, GBPUSD has developed a bullish move – wave A/B of level H8 or higher. There is a junior move inside of it – wave a/B of level H3.
The closest key level of resistance can be found at 1.5320/16, 1.5385, the top of the descending MF sloping channel and pivot 1.5444. On breaking above the 1.5264 high, the currency pair will trigger a bigger-scale rally – wave A/B of level Daily or higher.
Alternatively, on breaking below the 1.5154 low, the currency pair will start wave A/B of level H4. If that’s the case, we will be able to find the closest levels of support at 1.5145, 1.5117/12, 1.5086/82.
