GBP/USD lifts above 1.2700 after UK CPI rises above forecasts

The UK October CPI and RPI inflation reports have just been released. As noted here earlier, the markets were expecting a marked rebound in Consumer and Retail prices last month. Well, that is exactly what showed up. In fact the CPI beat on forecasts by 0.1% on the month and by 0.1% on the year. The core price beat more than that though, rising by 3.3%. Retail prices rose in line with forecasts, but were much higher, as expected. This data has pushed the Pound higher. The GBP/USD has lifted above the 1.2700 handle but so far stalled short of the 1.2720 level noted earlier. The high seen so far has been set at 1.2714, but it may not be finished with yet. The prospect of a BOE rate cut next month has all but been entirely diminished now. The GBP/USD is currently trading at 1.2708