By: DailyForex.com
The Pound Sterling earlier hit a 4-day trough against the US Dollar after the unexpected release of inflation data which failed to meet analysts’ expectations. According to the UK’s Office of National Statistics, core personal inflation fell to 2.3% in March (year-over-year) missing forecasts of a rise to 2.5% (from 2.4% in February); core inflation strips out volatile components such as fuel and food. The retail price index also unexpectedly fell to 3.3% in March (year-over-year), from 3.6% in February. That has led to concerns that the late-year rate increase that had been anticipated now might be put on the back burner until data more firmly supports it.
As reported at $1.4187, down 0.71% and not too far off the session trough of $1.4173; the session peak is a distant $1.4315. The EUR/GBP is trading higher at 0.87175 Pence, a gain of 0.67234%; the pair has ranged from a session low of 0.86440 Pence to a peak of 0.87213 Pence.
Eurozone Inflation Disappoints
In the European Union, as reported by Eurostat, inflation data also was an unexpected disappointment with CPI falling to 1.3% in March, down from February’s 1.4%. Meanwhile core CPI was flat at 1% in March on a year-over-year basis. The EUR/USD was trading at $1.2362, down 0.07% and off the session low of $1.23418 while the high stands at $1.23825.