Sterling declines after UK inflation data .. why?

2022-06-22 13:58:55 GMT (Economies.com)
Sterling declines after UK inflation data .. why?

Sterling declined in European trade against dollar for the third straight session following UK inflation data. 

 

UK inflation data indicated inflation is rounding off its peak, which is cutting bets on BoE rate hikes by 50 basis points. 

 

Prices 

 

GBP/USD fell 0.9% to 1.2160, after rising 0.2% on Tuesday, the second profit in a row as dollar slows down. 

 

UK inflation

 

UK consumer prices rose 9.1% in May, the fastest such increase since 1989, matching estimates, and up from 9.0% in April.

 

Core prices, excluding food and energy, rose 5.9%, missing estimates of 6.0%, and down from 6.2% in April.

 

The core prices have dampened bets on an accelerated pace of BoE rate hikes this year. 

 

The Dollar

 

The dollar index rose 0.5% after a two-day hiatus from gains against a basket of major rivals. 

 

Fed Chair Jerome Powell is testifying today ahead of Congress to provide more clues on the future of interest rates. 

 
 
 
  Symbol Last Change Chg.%
1.0427
-0.0154
1.4550%
1.2096
-0.0176
1.4311%
19.698
-1.669
7.811%
108.022
0.605
0.563%
111.50
2.47
2.27%
1799.775
-29.770
1.627%
 
 
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