The U.S. core consumer price index (CPI) rose 0.3% month-on-month in March, against the 0.2% growth in forecasts and February’s 0.1% growth, data released on Tuesday said. The CPI grew 0.6% month-on-month, its largest gain since August 2012.
The U.S. Federal Reserve has said that it will look through temporary increases in inflation, with investors expecting that the central bank will allow inflation to run higher than previously thought before it raises rates.
The GBPUSD market shows a short term bull trend and holds potential for a move to 1.3800. A breakout close beyond 1.3830 could spark rallies. Corrective dips and congestion holding 1.3730 should maintain the bull alignment. A close under 1.3660 is needed for a short term peaking turn for retracement selloffs.