U.K. inflation accelerated more than economists forecast. Consumer Price Index rose 2.7%. It was expected to quicken to 2.3%. Retail prices increased by 3.2% vs. forecast 2.9%. The pound extended its gain after the data was published. Investors consider that interest rate will not decrease and probably it will rise in the short term.
At 13:30 (GMT+4) Claimant Count Rate is published. It is expected that there will be 0.5K decrease in the number of unemployed in October against -4.0K in August. ILO Unemployment Rate is forecast to be flat (7.9%).
At 14:30 (GMT+4) Bank of England Quarterly Bulletin will be issued.
Taking into account that the pound is stable amid U.K. inflation accelerated, it is expected that the currency will slightly slide due to weak jobs data. As the ECB President dropped a hint about the future bank’s policy it is expected positive outlook. On the H4 the drop is probable to the trendline support at 1.5857. It is likely to observe the growth if the rate consolidates above the trendline resistance above the level of 1.5904. The first target is 1.5934, it is trandline resistance on the daily chart, then 1.5954 is resistance on the H4.