– UK inflation data surprised to the downside, with the headline rate dropping to 2.6%; an unchanged 2.9% had been predicted.
– The figures make a UK interest rate increase less likely, sending the British Pound sharply lower.
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UK inflation dropped unexpectedly to 2.6% year/year in June; an unchanged reading of 2.9% had been forecast by analysts. The core rate also fell, to 2.4%, below the unchanged 2.6% predicted.
In this webinar, DailyFX Analyst and Editor Martin Essex explains why the numbers make an increase in UK interest rates less likely. That weakened the British Pound against the US Dollar, Euro and Japanese Yen, while sending the FTSE 100 index of leading London-listed shares higher.
Chart: GBPUSD Five-Minute Timeframe (July 18, 2017)
For traders in the Pound, attention will now turn to UK retail sales and public sector borrowing data due later this week.
— Written by Martin Essex, Analyst and Editor
To contact Martin, email him at firstname.lastname@example.org
Follow Martin on Twitter @MartinSEssex
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