# Sterling unfazed by higher inflation, still driven by dollar - Markets - Business Recorder

> Sterling held near $1.3228 on Wednesday in thin August trading after UK annual CPI rose to 1.0% in July from 0.6%, above Reuters poll forecasts. The pound stayed close to an eight-month high as the weaker dollar drove currency moves.

- Date: 2020-08-19 · published 2020-08-19T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/51862-sterling-unfazed-by-higher-inflation-still-driven-by-dollar-markets-business
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

A firmer pound against a weaker dollar mainly reflects dollar weakness, which tends to support USD-priced commodities and can lift US export competitiveness in pound-linked trade. The inflation surprise has little direct grain or feed price impact.

## Read by commodity

- DXY: bearish ▼
- GBPUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-08-06 | [Sterling rises to 5-month high - Markets - Business Recorder](https://feedsoft.ai/events/51867-sterling-rises-to-5-month-high-markets-business-recorder.md) | +0.3% | -0.7% |
| DXY | 2023-04-13 | [Indian rupee firms as cooling US inflation, recession woes hurt dollar - Markets - Business Recorder](https://feedsoft.ai/events/36660-indian-rupee-firms-as-cooling-us-inflation-recession-woes-hurt-dollar-markets.md) | +0.3% | -0.4% |
| DXY | 2021-03-11 | [Dollar at one-week lows after benign inflation data - Markets - Business Recorder](https://feedsoft.ai/events/48346-dollar-at-one-week-lows-after-benign-inflation-data-markets-business-recorder.md) | -0.4% | -0.3% |
| DXY | 2020-06-10 | [Dollar slumps to three-month lows on Fed easing speculation - Markets - Business Recorder](https://feedsoft.ai/events/52808-dollar-slumps-to-three-month-lows-on-fed-easing-speculation-markets-business.md) | +0.8% | +0.8% |
| DXY | 2020-07-31 | [Dollar extends dramatic fall in European trade - Markets - Business Recorder](https://feedsoft.ai/events/52332-dollar-extends-dramatic-fall-in-european-trade-markets-business-recorder.md) | -0.3% | -0.6% |

## Sources

- brecorder.com: https://www.brecorder.com/news/40013094

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.