Pound Drops vs. Euro on Falling CPI, Rises vs. Dollar

The Great Britain pound dropped versus the euro today after a report showed that UK inflation unexpectedly slowed last month. The currency was able to gain against the US dollar.
Britain’s Consumer Price Index fell to 2.8 percent in May from 3.0% in the month before. Analysts were sure that the index would remain unchanged. The Retail Price Index fell from 3.5 percent to 3.1 percent last month, more than was predicted by experts. The negative data refueled speculations about possible quantitative easing.
GBP/USD was up from 1.5667 to 1.5701 as of 14:58 GMT today, following the earlier drop to 1.5614. EUR/GBP advanced from 0.8026 to 0.8070.

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