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UK's Consumer Prices Index Rises Higher than Expected

By Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.

By 8:03 GMT the pound sterling went up by 0.25 percent against the US dollar, hitting the 1.3274 level.

UKThe United Kingdom's Office for National Statistics reported that the Consumer Prices Index (CPI) for September went up more than expected in October at 0.7 percent (year-on-year), after being at 0.5 percent in the previous month. In monthly terms, the CPI remained unchanged, still higher than analysts' expectations of a 0.1 percent contraction, after going up by 0.4 percent in September.

The Retail Price Index was at 1.3 percent in October (year-on-year), higher than expected and after being at 1.1 percent in the previous month. In monthly terms, it remained unchanged, though higher than the surveyed analysts' expectations of a 0.1 percent contraction and below September's 0.3 percent climb.

So far, 1,410,732 coronavirus cases have been reported in the United Kingdom, as well as 52,745 total deaths. Recently, the U.K. recorded 598 additional coronavirus deaths, the highest daily number of deaths since May. England is now amid a national lockdown which is expected to end in the first week of December.

By 8:03 GMT the pound sterling went up by 0.25 percent against the US dollar, hitting the 1.3274 level.

Bank of Japan is Not Considering Ending its Loose Monetary Policy

The Bank of Japan's Governor Haruhiko Kuroda commented that it is inappropriate to put an end to the bank's current ultra-loose monetary policy before the country moves towards sustainable economic recovery and hits its 2 percent inflation target. He also highlighted that the bank is ready to continue to adjust its stimulus program with an eye on the economy, prices, and markets.

Finance Minister Taro Aso said that the government is not planning to turn Japan into an experiment for Modern Monetary Theory and ruled out an immediate tax hike to cover the cost of the government's response to COVID-19's economic impact. Minister Aso also said that the government is not considering lowering the sales tax.

By 8:24 GMT the US dollar went down by 0.24 percent against the Japanese yen, falling to the 103.92 level.

Ibeth Rivero
About Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.

 

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