020 7898 0500Sterling endured a rough ride yesterday, weakening against the US dollar and euro following worse than anticipated inflation data. Official data released showed that inflation had slowed more than forecast and had dropped to its lowest in a year with the Consumer Price Index figure coming out at 2.2%, 0.3% behind expectations. With inflation falling towards the Bank of England’s 2% target, the pressure for the central bank to raise its interest rates subsides, which in turn caused the pound to fall to its lowest point in two month against the US dollar. This morning, labour data from the UK will be released showing the change in the number of people claiming unemployment benefits and the overall rate of unemployment. Then later on this morning the BoE will release its inflation report, which will include forecasts dictating how quickly the central bank thinks the rate of unemployment will fall. This could cause a lot of movement for sterling as it should provide greater clarity as to when the BoE thinks it may look to hike interest rates. Call your trader now for the latest sterling rates, amid a significant news day for sterling.
