As market participants absorbed the inflation data from the US, the US dollar index corrected lower. The index barely touched the market of 92.60 and immediately tried to recover losses. Still, the upside was limited ahead of the Wall Street trades because the released statistics did not produce an expected result. The US Bureau of Labor Statistics reported that the Consumer Price Index grew slower than expected. Last month, the CPI rose by 0.2%, while experts had projected an advance of 03%. However, in March, consumer prices edged down by 0.1%. The annual inflation rate accelerated to 2.5%, in line with expectations. Excluding food and energy prices the core consumer prices advanced by 0.2% in April coinciding with forecasts.
The data became the key reason for correction in the greenback. However, the US dollar remained strong against some of its counterparts, against the sterling in particular. The GBP/USD pair was trading at 1.3480 level by the end of the European session. The British pound dropped after the Bank of England announced its monetary policy decision. The key interest rate was left unchanged at 0.5% as it had been widely expected. The central bank's officials said that despite the willingness to hike the benchmark rate, the ongoing economic uncertainty cannot guarantee the success of the rate increase. The GBP/USD pair is likely to close this week in the negative territory. The greenback may be further supported by the business confidence data scheduled for release later in the day.