Pound Tumbles To 2-Month Low After UK Inflation Falls

November 12, 2013

Sterling tumbled to a two-month low against the US dollar today on the back of UK inflation unexpectedly falling to its lowest rate for more than a year in October. The softening inflation rate will likely reassure the Bank of England that the British economy is strengthening and thus lessens the chance of a rate hike soon. This led to a sell-off in the pound today.

The UK consumer price index (CPI) number was well below economists' average forecasts of a drop to 2.5 percent and is the lowest rate since September 2012. It was driven by declines in petrol prices and other transport costs.

GBPUSD slid to a session low of $1.5853, the lowest since September 13, down from the European session open of $1.5960.

Euro was under pressure, falling to a low of $1.3358 after disappointing German inflation data. The Final CPI reading fell 0.2 percent in October, the lowest rate in six months. Since Germany is Europe’s largest economy, the data affected the euro.

The dollar continued to rise against the yen, as it is being buoyed by strong US employment data from Friday. Any strong data will strengthen the case for the Federal Reserve to being scaling back stimulus sooner than the predicted March 2014 date.

USDJPY climbed to a high of 99.78 yen, the highest since September 13.

Publication source
FxNet information  FxNet reviews

January 20, 2017
The dollar has settled moderately lower
Asian stock markets were mixed overnight, after U.S. and European shares closed in the red Thursday. Japan and mainland China bourses managed to move higher (Chinese GDP beat expectations at 6.8%)...
January 20, 2017
A huge disappointment in the UK data
UK retail sales fell most since 2012. We see he fastest pace of decline in almost five years in December. It is due to sales of... pretty much everything from household goods to clothing and food...
January 20, 2017
Trump takes office today. Markets await inauguration speech
Investors await Trump's inauguration and speech due later today as he takes office as the 45th President of the United States. The U.S. dollar was seen giving up some of the gains yesterday with some volatility coming off the EURUSD on the back of the ECB meeting...

FxPro Rating
Orbex Rating
Z.com Trade Rating
FXCM Rating
FIBO Group Rating
XM Rating

OptionRally Rating
Banc De Binary Rating
Binary.com Rating
365BinaryOption Rating
Beeoptions Rating
OptionTrade Rating