The data negatively affects sentiment in the pound

The data negatively affects sentiment in the pound


The latest economic data from the United Kingdom were disappointing in general, and resulted in the pound slipping to a new 10-month low against the US dollar. In a recent survey of economists, they had predicted that the consumer price index and the base consumer price index for June would rise to 2.6% and 2.2%, respectively. However, the Office of National Statistics of the United Kingdom reported the figures as 2.2% (unchanged year after year) and 1.9%, falling from the previous reading of 2.1%. With the rest of the other data related to inflation, it generally fails, with the exception of the Producer's Price Inflation Inputs, which had the general effect of driving away the feeling of the Pound.

As reported at 11:18 a.m. (BST) in London, the GBP / USD pair was trading at $ 1.3041, dropping 0.54% and leaving the session at $ 1.3010 while the maximum is a distant $ 1.3117. The EUR / GBP is higher at 0.89141 Pence, a gain of 0.27%; the pair has varied from 0.88742 Pence to 0.89236 Pence.

Change in the inflation outlook of the Euro?

Data were also published for the Eurozone, with the Core Consumer Price Index reaching 0.9% in June, against the expected 1.0%, while the Consumer Price Index reached forecasts of 2% for June (year after year) ). Now that headline inflation is at the target rate of 2%, that could affect the feeling of an adjustment of the interest rate of the European Central Bank. Mario Draghi, the president of the ECB, said that the inflationary outlook seemed to justify the brake on his massive QE program. Analysts warn that today's data could result in a setback for that way of thinking. The ECB will make a decision on the interest rate next week. The EUR / USD was trading at $ 1,162, down 0.33%; the pair has varied from $ 1,16071 to $ 1,16650 on today's trading day.