FX.co ★ Global macro overview for 20/01/2016

Global macro overview for 20/01/2016:

In his yesterday's speech, BoE Governor Mark Carney confirmed that the British economy is not strong enough yet to apply the interest rate hike despite the fact that inflation climbed to the highest level in eleven months. The Office for National Statistics revealed that the consumer price index increased 0.2% in December, and core inflation rose to 1.4% (highest level in more than a year). Nevertheless, CPI for the whole year was at the zero level, which is the lowest level since 1950. Last year at the same time, it was at 1.5%. It looks like market participants will have to wait for the BoE interest rate hike a little bit longer as the inflation readings are nowhere near the BoE 2% target.

After bouncing from the support at the level of 1.4129, the GBP/USD pair is trying to test the resistance at the level of 1.4236.