The Pound Sterling (GBP) fell sharply after the UK’s inflation data for September came in lower than expected. The Consumer Price Index (CPI) showed annual inflation slowing to 1.7%, below expectations of 1.9% and a significant drop from August’s 2.2%. Core CPI, excluding volatile items like food and energy, also decelerated to 3.2%, below forecasts. The UK’s services inflation, a key measure for the Bank of England (BoE), dropped to 4.9% from 5.6%.
This soft inflation data has led to increased market bets that the BoE will cut interest rates, with financial markets expecting a 25 basis points (bps) cut in one of the two remaining policy meetings this year. The GBP/USD pair dropped below the psychological support level of 1.3000, facing downward pressure from a strengthening U.S. Dollar, which remains buoyant on better-than-expected U.S. economic data.
Technically, the Pound Sterling is weakening, trading below key moving averages, with the next major support level around 1.2840.
https://www.fxstreet.com/news/pound-sterling-tumbles-on-soft-uk-inflation-202410160702


