Home Daily Commentaries UK inflation remains flat for January

UK inflation remains flat for January

See Wah Li
Written by
See Wah Li

See Wah Li

OFXpert

With more than 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations.

| Wednesday 14 February, 2024

Daily Currency Update

UK inflation held firm in January, as per the most recent data released by the Office for National Statistics (ONS), albeit slightly lower than anticipated by the market. Annual inflation for January remained stable at 4%, falling short of market predictions of 4.2%.

Meanwhile, wage growth decelerated less than anticipated toward the end of 2023, indicating that the labour market might require more time to stabilize, potentially delaying an interest rate cut by the Bank of England.

Additionally, GDP data for the UK is anticipated later this week, with market forecasts suggesting a 0.1% contraction in Q4, potentially pushing the UK into a technical recession.

Key Movers

On Wednesday, the US dollar hovered close to its highest levels against major currencies in three months, with traders delaying expectations for the Federal Reserve's initial interest rate decrease after unexpectedly high US inflation data emerged overnight.

Expected Ranges

  • GBP/USD: 1.2505 - 1.2585 ▼
  • GBP/EUR: 1.1705 - 1.1765 ▲
  • EUR/USD: 1.0655 - 1.0725 ▼

Written by

See Wah Li

OFXpert

See Wah is passionate about supporting positive transformations when it comes to managing foreign exchange. As a Senior Currency Consultant at OFX, his goal is to help businesses make informed decisions, alleviate risks, and enhance their currency strategies for success. With over 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations and mitigate their impacts on business profitability.