Pound Falls on Weak UK Inflation Data Amid Brexit Summit

The  British pound today fell significantly against the  dollar following the  release of  the  latest UK inflation data, which missed expectations. The  pound was also weighed down by  the  ongoing European Union Brexit summit, which is not expected to  result in  a  deal.
The  GBP/USD currency pair today fell from an  opening high of  1.3193 to  a  low of  1.3124 in  the  early European session.
The  currency pair opened today’s session on  a  downward trend before recovering slightly and  then heading lower after the  UK macro releases. According to  the  Office for  National Statistics, the  UK consumer price inflation grew by  0.1% in  September versus the  expected 0.3% increase. The  monthly headline CPI data translated into an  annualized 2.4%, which was lower than the  consensus estimate of  2.6% annual growth. The  core CPI data also fell short of  expectations by  coming in  at  an  annualized 1.9% versus the  expected 2.0% print. The  retail price index for  September, which was also released today, did not meet expectations.
The  UK’s producer price index for  September and  the  house price index both of  which beat expectations by  a  large margin had a  minimal impact on  the  currency pair. The  pair was also affected by  the  Brexit summit developments where EU leaders are expected to  give British PM Theresa May a  hard time today.
The  currency pair’s future performance is likely to  be affected by  Brexit headlines and  the  release of  the  US housing data later today.
The  GBP/USD currency pair was trading at  1.3145 as  at  10:26 GMT having dropped from a  high of  1.3193. The  GBP/JPY currency pair was trading at  147.48 having declined from a  high of  148.25.

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