British year-on-year CPI expected to slow in November

NEW YORK (Forex News Now) – Britain’s National Statistics is due on Tuesday to publish key data on the consumer price index, in one of the day’s major realtime forex news events.

The report is expected to show that the price of goods and services purchased by consumers slowed to a year-on-year rise of 3.1% in November, down from the October mark of 3.2%, major online FX trading news outlets reported.

The office is scheduled to release the report at 9:30 A.M., GMT; as such the data is likely to have an impact on currency market trading today.

The simultaneous release of a report on core CPI, which measures the change in the price of goods and services purchased by consumers, but excludes food, energy, alcohol and tobacco, should also have an impact on trading Tuesday.

According to GBP/USD analysis, a higher-than-expected rise in the year-on-year CPI could lift the currency pair toward short-term resistance around the Nov. 16 high of 1.6087.

But should the data show a greater-than-forecast drop, GBP/USD could push downward toward short-term support at around last Thursday’s low of 1.5711.