The Pound is soaring. Overview for 16.12.2020

GBPUSD manages to rise even despite the Brexit complications. 

The British Pound is growing against the USD on Wednesday afternoon. The current quote for the instrument is 1.3478.

So far, British and European policymakers have managed to agree on further negotiations but several extra days are very unlikely to help them in talks since the entire year wasn’t enough. 

Today’s statistics published by the United Kingdom showed that the Consumer Price Index was only +0.3% y/y in November after being +0.7% y/y the month before and against the expected reading of +0.6% y/y. The Core CPI also slowed down, +1.1% y/y against market expectations of +1.4% y/y 

The PPI Input showed +0.2% m/m in November, the same as in the previous month, although it was expected to add 0.4% m/m. The PPI Output added 0.2% m/m against the expected reading of +0.1% m/m. 

So far, the Pound isn’t paying much attention to the statistics (it’s wrong) and truly believes that British and European policymakers are about to come to an agreement to avoid the “hardcore” Brexit.