GBP/USD still holding 1.29 as important UK inflation data looms

An update here yesterday noted how the GBP/USD had managed to hold above the 1.29 handle and rebound. Well, that rebound was pretty limited in real terms and the GBP/USD has not seriously threatened the 1.30 level since. It closed in the US last night at 1.2944. The range seen so far today has been covered by 1.2927 to 1.2949. At 7am GMT this morning we will get some very important UK inflation reports. The February CPI and RPI reports are expected to show a rebound in consumer and retail prices last month. CPI is forecast to rise by 0.5% after falling by 0.1% in January. It is the same for RPI. That is forecast to rise by 0.7% from a prior 0.1% fall. However, the annualised readings are not expected to rise and if anything forecast to fall ever so slightly. Now, here is the rub on all this; the PPI data is usually published with the CPI and RPI, but on this occasion it has been postponed due to data quality issues. Well, make of that what you will, but it all looks a little spurious to this trained eye- we shall see. So, the Pound is sure to move versus its major counterparts on any surprises in the CPI and RPI numbers. An update here will follow as soon as possible once the data hits the screens. Meantime, the GBP/USD is right now at 1.2935