The pound has been depressed by an uptrend in the American currency, which now looks quite strong in the global FX arena. What’s more, talk about restricting supplies of the British Covid-19 vaccine has also taken a toll on cable.
In addition, macro data out of the UK was lackluster today. Inflation in “Foggy Albion” fell to 0.4% YoY in February compared to 0.7% in January. Core inflation also slipped to 0.9%, down from 1.4% YoY in January.
Inflation contracted due to a sharp decline in prices for clothes and shoes as the pandemic shifted the seasonal range of demand. Since households have been staying at home due to an extended lockdown, nobody needs a change of wardrobe.
GBPUSD may revert to the downside, with a selling target at 1.3650.