GBP PPI Input m/m comes in at -2% against 1.9% consensus

The UK’s PPI Input m/m, released today, showed a reading of -2%. This figure significantly undershot the consensus expectation of 1.9% and marked a notable decline from the previous month’s 2.4%. The actual print represented a -205.3% surprise against the consensus.

Following the release, Sterling pairs showed limited movement. GBPUSD moved +7.2 pips five minutes after the data, settling at +3.0 pips after 15 minutes. GBPAUD saw a +3.5 pip gain at the five-minute mark, then +0.9 pips after 15 minutes. GBPJPY gained +11 pips initially, then +3.7 pips after 15 minutes. EURGBP moved -1.9 pips five minutes after the release, then was flat at 0.0 pips after 15 minutes. These measured moves so far are small when compared to typical historical reactions. For instance, GBPUSD has a median 1-hour move of 15 pips after past releases, with top-quarter moves exceeding 31 pips. GBPAUD has a median 1-hour move of 19 pips, and GBPJPY’s median 1-hour move is 18 pips. EURGBP’s median 1-hour move is 11 pips after past releases.