The GBPUSD pair catches aggressive bids during the early North American session and rallies beyond the 1.1550 area in reaction to softer US consumer inflation figures.
The US Bureau of Labor Statistics reported that the headline CPI rose 0.4% in October and the yearly rate eased to 7.7% from 8.2% in September, both missing expectations. Additional details revealed that core inflation, which excludes food and energy prices, decelerated more than anticipated to a 6.3% YoY rate from 6.6% previous.
The data adds to speculations that the Federal Reserve will slow the pace of its policy tightening and drags the US Dollar to a fresh multi-week low. This, in turn, is seen as a key factor behind the GBPUSD pair's sharp rally of over 170 pips in the last hour, taking along some intraday trading stops placed near the 1.1500 psychological mark.
It, however, remains to be seen if bulls are able to capitalize on the move amid a bleak outlook for the UK economy, which might continue to act as a headwind for the British Pound. Hence, the focus now shifts to the Priliminary UK Q3 GDP report, due on Friday. The key UK macro data should provide a fresh directional impetus to the GBPUSD pair.
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