The data published by the UK's Office for National Statistics revealed that annual CPI jumped to 7% in March. This reading surpassed analysts' estimate of 6.7% and helped the British pound find demand. Economists at ING expect the EUR/GBP to continue pressing the 0.83 level while GBP/JPY can push onto the 167.50 area.

Upside surprise in March CPI to keep GBP supported

“Today's broad-based upside surprise in March UK CPI looks set to keep aggressive Bank of England tightening expectations in place for a little longer and keep GBP supported.”

“Today's UK inflation data suggests CPI could be peaking in the 8.5% area in April and could bring back expectations that the BoE hikes by 50bp in May – currently a 28bp hike is priced. That can see EUR/GBP continuing to press the 0.8300 area, while GBP/JPY can push onto the 167.50 area.”