UK inflation fell to 1.2%, well below expectations for 1.4% and last month’s 1.5%. RPI dropped to 2.3% as expected but core CPI also disappointed with a big fall to 1.5%, significantly worse than 1.8% predicted. The fall in both headline and core inflation is worrying. This is the lowest in 5 years. GBP/USD is at 1.5980, a fall of 35 pips in the immediate reaction. Update: the pair has already hit 1.5960. Will the BOE push back a rate hike until August 2015? The UK was expected to report a slide in inflation to 1.4% y/y for the month of September, down from 1.5% in August. Core CPI carried expectations for a dip to 1.8% and the Retail Price Index (RPI) to 2.3%.Falling inflation lowers the chance of an early rate hike. While headline inflation is also a result of lower energy prices, the fall in core inflation is also a reflection of the lack of rises in salaries. Tomorrow we get the employment and wages data. See how to trade the Average Earnings Index with GBPUSD. GBP/USD was sliding towards the publication, trading around 1.6020. The pair traded above 1.6050 earlier in the day. Other figures: PPI Input was predicted to drop by 0.4% m/m but actually fell by 0.6% and PPI Output by 0.1% and that’s the actual figure as well. The official House Price Index was expected to boast a rise of 12.3% year over year, showing that the housing sector is in a world of its own, but it remained at 11.7%. The pound has been under pressure amid the global gloom and rate hike expectations have been pushed back. The same happens in the US, but the greenback currently has the upper hand. 1.60 is naturally a support line, and 1.6150 is strong resistance. For more, see the GBPUSD forecast. 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. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next EURUSD, GBPUSD, USDJPY Pivot points and TA October 14 John Benjamin 8 years UK inflation fell to 1.2%, well below expectations for 1.4% and last month's 1.5%. RPI dropped to 2.3% as expected but core CPI also disappointed with a big fall to 1.5%, significantly worse than 1.8% predicted. The fall in both headline and core inflation is worrying. This is the lowest in 5 years. GBP/USD is at 1.5980, a fall of 35 pips in the immediate reaction. Update: the pair has already hit 1.5960. Will the BOE push back a rate hike until August 2015? The UK was expected to report a slide in inflation to 1.4% y/y for the month… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.