The British pound got support after publication of strong inflation data
Yesterday the pair GBP/USD continued to rise as a result of the support in the form of stronger inflation than expected. The pair GBP/USD could reach the high 1.4347, but lost the strength to the US trading session.
In the UK, the monthly CPI index rose from 0.3% to 0.5%. The annual core CPI index rose from 1.2% to 1.5%. However, the house price index fallen from 7.9% to 7.6%.
Today, the investors will be focused at the US retail sales in March. The retail sales are expected to grow by 0.4%. Investors also expect good performance on inflation indicators: the producer price index.
The US is also to publish data on crude oil inventories from the Department of Energy, which is likely will exceed the forecasts. Today we are waiting for the reduction of the pair GBP/USD to the area of 1.4170.
How to trade
We would buy PUT options if the pair falls below 1.4206.
Target price: 1.4206
Close price: 1.4204
Expiry time: 20:00 GMT