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UK inflation falls to 1% – GBP/USD slides, then bounces

Inflation in the UK falls to the lower bound of the BOE’s target: 1% y/y. This comes with a fall of 0.3% in prices m/m in November. Also Core CPI falls short with a slide to 1.2% y/y. The RPI is down to 2%. All in all, we have lower than expected numbers in all key figures.

GBP/USD slides to 1.5630. Update: As Carney continues speaking, the pound eventually bounces back up.

More data: HPI slides from 13.2% to 10.4% y/y. PPI Input is down 1% m/m as expected. PPI Output  is the only positive surprise with +0.2% m/m.

The United Kingdom was expected to report a slide in headline inflation to 1.2% in November after 1.3% in October. Core CPI was predicted to remain unchanged at 1.5% y/y and the Retail Price Index (RPI) carried predictions for a slide to 2.2% after 2.3% beforehand. GBP/USD traded around 1.5655.

Earlier, the Bank of England released its stress test results, which weren’t really shocking. BOE governor Mark Carney is giving a press conference about the results at this time.

More:  GBPUSD: Declines On Price Failure

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.