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UK May inflation pretty much as expected- GBP/USD lifts slightly

The important UK CPI and RPI inflation reports covering the month of May have just been released. As mentioned here a little earlier, the markets were anticipating a lower annualised reading on both consumer prices and retail prices last month. Just ahead of these releases the GBP/USD was edging a little lower and testing the 1.2700 handle. The data has pretty much come in as the markets expected in CPI, but the RPI data is a little shy of that, dropping to 3% on an annualised basis. The GBP/USD lifted slightly on the news, but in terms of the reason for that, it could be a priced in reaction to the data. The GBP/USD is currently trading at 1.2712 in what can only really be described so far, as a rather muted reaction to the data 

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