Parliamentary Brexit vote may move the GBP
The endless Brexit loop continues to intrigue traders.
British currency reaches 10-month minimum on dismal British inflation data
On Wednesday, the British pound headed south to the lowest value for 10 months versus the broadly stronger greenback because suddenly dismal British inflation data decreased chances for an August rate lift by Britain’s key financial institution.
The currency pair GBP/USD reached a minimum of 1.3011, which is the weakest outcome since September 5, last year.
The UK currency went down to the day’s minimum after data disclosing that inflation in Great Britain managed to ascend at a slower than anticipated tempo in June, thus contributing to the Bank of England's tough dilemma whether to lift interest rates in August or not.
As the Office for National Statistics informed, the annual rate of inflation in the United Kingdom jumped by approximately 2.4% last month, ruining hopes for a 2.6% ascend.
Underlying inflation edged up by nearly 1.9% on a year-over-year basis, decelerating from 2.1% in May and also confounding estimates of 2.2%.
As for consumer prices, they stood still for the month in June, decreasing from 0.4% in May and in contrast with estimates of 0.2%.
The inflation report showed up just a day after data unveiling that wage surge in the United Kingdom decelerated to its weakest value for six months for the three months to May, notwithstanding record employment.
With inflation outpacing wage growth British customers are currently experiencing a cost of living squeeze, which makes an August interest rate lift less real.
The UK currency was already on the defensive having dived nearly 1% versus the evergreen buck on Tuesday in the face of Brexit uncertainty.
Demand for the US currency was still backed because optimistic remarks from the head of the Fed underpinned hopes that the key financial institution of America is going to gradually lift interest rates.
Similar
Elections in Canada: what do they mean for the CAD?
Today, the election in Canada will determine whether the Liberal Party Prime Minister Justin Trudeau or the Conservative Party leader Andrew Scheer will lead the government…
Will the situation change for the British pound?
The reports that the UK and the EU reached a deal pushed the GBP up immediately.
Latest news
Parliamentary Brexit vote may move the GBP
The endless Brexit loop continues to intrigue traders.
Will the last ECB meeting with Mario Draghi be crucial for the EUR?
The European Central Bank will release its monetary policy statement and announce an official rate at 14:45 MT on October 24.
Market updates on October 22
The opportunities for the CAD and the GBP for the second day in a row
Deposit with your local payment systems
