GBP/USD Rallies as Inflation Data Is Released

The British pound rose to new highs today rallying against other currencies such as the US dollar for the second day in a row.

The British pound gained against other major currencies such as the US dollar and the euro after the release of UK inflation data for the month of September.

The rally was triggered by the release of inflation figures today, which were higher than what analysts had forecasted. The inflation data showed that consumer prices had increased at an annual rate of 1.0% as compared to the forecasted figure of 0.9%.

The UK’s Consumer Price Index rose 1.0% year-on-year in the quarter ending in September, which was its highest level since November 2014.

The GBP will remain on the spotlight for the rest of the trading week as more financial data relating to the UK is to be released. Data on the UK labor market is to be released tomorrow, while data on the retail sector is due for release on Thursday. Finally, data on the public finances will be released on Friday.

The GBP/USD reached a low of 1.2178 and a high of 1.2326 and was trading at 1.2291 as of 19:42 GMT today, although the London market was closed. The EUR/GBP was trading at an all-time low as it lost almost 100 pips; the currency pair hit a low of 0.8913, which was its lowest level this week.

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