Britain’s Pound Hit Hard by Deflation

The Great Britain pound was hit hard by today’s inflation data. Britain’s consumer prices went into deflation territory last month even though analysts had promised them to stay almost unchanged.
Office for National Statistic reported today that UK consumer prices fell 0.1 percent in September from a year ago after showing no change in August. Most other indicators released from the United Kingdom during the current trading session were also below expectations. Speculators are questioning the central bank’s ability to start monetary tightening under such circumstances, and this makes the pound very vulnerable.
GBP/USD slid from 1.5346 to 1.5226 and GBP/JPY dropped 1 percent from 184.16 to 182.36 as of 11:15 GMT today.

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