GBPUSD fueled by CPI and employment data overnight, US retail sales in focus

GBPUSD reached the 1.3850-mark overnight, mainly fueled by the high-than-expected inflation data. August CPI surged by 3.2% on a yearly basis. The Bank of England has made the same statement as the Fed, stating that inflation is only transitory. In the labor market, the unemployment rate has fallen to 4.6% from 4.9%. The number of people on payrolls increased for the 9th straight month. The positive news has strengthened GBPUSD temporarily. Currently, at press time, the pair has dropped to 1.3833.

In the next 24 hours, we will have US retail sales data in focus as well as New Zealand’s Q2 GDP and Australia’s employment data. Some sources say that retail sales in New York soared in September. Investors are thus expecting strong gains in new orders, employment, shipment, and delivery. In Australia, economists forecast that the employment will likely fall by 90k mainly due to lockdown measures.