National Statistics Office of Great Britain will publish a release on inflation in the United Kingdom from the opening of the European trading session. I expect the data to be released at the level of the median forecasts, which will not have a strong impact on the course of trading. On the one hand, inflation will show growth on the back of an increase in gasoline prices.

On the other hand, the coronavirus restrictions in the British economy have a negative impact on consumer spending, as the officials from the Bank of England have said many times. An uptrend in the oil market will support the British pound as assets are historically correlated with each other. Investors are increasing “longs” in oil, as from February 1, Saudi Arabia will reduce its production by 11.1% to 7.96 million bpd. On the scale of the OPEC cartel, production will be cut by 3.9%. This is a significant indicator for the oil market.

Investment idea: Buy 1.3627/1.3599 and take profit 1.3690.