UK pound continues to struggle against its major counterparts today, performing mostly lower across the board. Inflation data is a big part of the problem for the sterling today, with concerns about the economy starting to creep back in.
Inflation data came in weaker than expected for the United Kingdom. The Office for National Statistics reports that CPI slowed to 1.2 per cent in September, dropping from the 1.5 per cent seen in August. Many analysts had expected to see a slight drop from August to September — to 1.4 per cent.
This weak inflation data indicates that there may be more trouble ahead for the UK economy, and it might also mean that the Bank of England will be slow to end its quantitative easing program altogether.
Comparatively speaking, though, the UK economy is still doing better than the eurozone economy. Even though the sterling is having a spot of weakness against the euro right now, many expect the pound to gain against its 18-nation counterpart in the long run. It will be harder for the UK pound to gain against the US dollar, though.
At 10:27 GMT GBP/USD is down to 1.5958 from the open at 1.6085. EUR/GBP is up to 0.7932 from the open at 0.7928. GBP/JPY is down to 170.6740 from the open at 171.8460.
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