We have recently seen positive data from the United Kingdom. Are these signs of recovery reliable? Standard & Poor's recommended to be careful with this prompt recovery. The European Union is making pressure on the May's government to trigger the Article 50. The growing uncertainty around the banking sector in London is driving the executives to think about move part of the labor to an European country. They are facing some problems because they can't find big offices as they would like to. I know that the Bank of England will support the economy and maybe they will extend the contingency program. This is why I think the GBP can look for lows in the coming months.
UK CPI
The UK Consumer Price Index was released this morning showing a lower than expected figure. It was 0.6% vs 0.7%, the difference is not big but all is about expectations. After the released the pound fell. The CPI is one of the most important macroeconomic indicators in Britain. It always move the market. With the current uncertainty of the UK's economy and the worse than expected figure we can understand why the pound is falling vs the American dollar around 163 pips.
