33 days ago • Posted by Ajmir Omid
#GBP weakens as UK inflation moderates #fx #boe
The pound is taking a bit of a dip this morning, with the GBPUSD down by 0.6%. Word on the street is that investors are speculating that the Bank of England may hit the pause button on hiking interest rates soon. Why? Well, turns out the prices for January in the Kingdom came in lower than what analysts had anticipated on an annual basis (+10.1% vs 10.3%) and on a monthly basis (-0.6% vs -0.4%).
However, before you start panicking and unloading your pounds, keep in mind that the UK economy is actually doing better than many had predicted. So while the selling pressure might cause a bit of a dip, the downside risk should be limited.