GBP/USD braced for UK inflation data due out shortly

At 7am GMT the UK will release its latest monthly inflation report. That covers Consumer, Retail and Producer prices (CPI, RPI and PPI). As noted here earlier today, the charge higher in the GBP/USD since this time yesterday has come at a time when the markets expect sharply lower readings for the UK CPI this morning. The forecast is for CPI to have dropped back to just 4.7% annualised in October, from a prior rate of 6.7% recorded in September. The monthly rate is anticipated to have only risen by 0.1% last month, from 0.5% the month before. The outlook for retail prices is pretty similar too. So, that would seem to be baked into the cake as far as the pound is concerned. That fact that the GBP/USD has risen so much in anticipation of this data is odd to say the least, but it speaks volumes about the fall out in the dollar yesterday. The GBP/USD rose to as high as 1.2506. yesterday evening. It later closed in the US at 1.2499. The range seen so far this morning has been covered by 1.2479 to 1.2500. It is just now trading at 1.2490, but it is going to move when that inflation data hits the screens in around 15 minutes. An update will follow here as soon as possible once the data is released