After three days of gains, the Pound Sterling seems to have lost some positive momentum after the release of the latest inflation data for the UK. A slew of data was released this morning, with generally mixed results, none of which will help cement the likelihood that the Bank of England might change their rate outlook for 2019. Producer Price inputs and outputs were generally better than expected in November, while the retail price index was flat on an annual basis and below expectations on a month-to-month basis.
As reported at 11:39 am (GMT) in London, the GBP/USD was trading at $1.2638, down 0.07%; the pair is moving off the session peak of $1.2679, while the low was recorded at $1.2632. The EUR/GBP is trading at 0.9021 Pence, a gain of 0.39%; the pair has ranged from 0.89826 Pence to 0.90237 Pence in today's session.
Inflation Inches Closer to BoE Target
What market players were waiting for was personal inflation, which largely disappointed; the UK Office of National Statistics reported that CPI met expectations, in general. Core CPI for November (annually) came in at the predicted 1.8%, down from 1.9% in the previous reading, while CPI (annually) came in at the expected 2.3%, down from 2.4% previously. The Bank of England has a 2% target for CPI, and as it approaches that it could begin to put a dent in expectations that the central bank might continue with a tighter monetary policy.