Pound Mixed Following Poor Economic Data

The Great Britain pound was mixed today following yesterday’s surprisingly strong performance. The sterling was resilient during the previous trading session even though macroeconomic data from the United Kingdom was disappointing.

Britain’s Consumer Price Index rose just 1.0 percent in November. This is compared to the median forecast of 1.2 percent and the previous month’s increase of 1.3 percent. The report cited following reasons for the slowdown:

Falls in transport costs (notably for motor fuels, air transport and second-hand cars) and in the prices of recreational and cultural goods were the main contributors to the slowdown in the rate of inflation between October and November.

Food and motor fuel prices, which have historically been upward contributors to the CPI 12-month rate, are currently reducing it by 0.4 percentage points.

Most other indicators released yesterday were poor too.

Yet the sterling performed rather well during the previous trading session despite the unfavorable data though it fell against the yen. Today, the pound had an opposite behavior: the currency dropped against the dollar but gained on the Japanese currency. Against the euro, the UK currency is flat.

GBP/USD ticked down from 1.5748 to 1.5725 as of 6:14 GMT today. GBP/JPY advanced from 183.31 to 183.91. EUR/GBP was flat at 0.7940.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *