UK inflation at 3.2% sends Sterling lower ahead of BoE
Tägliche Währungsaktualisierung
UK Headline CPI for November fell significantly more than expected, dropping to 3.2% (vs. 3.5% forecast and down from 3.6%). Core inflation also cooled to 3.2%.Market reaction has been swift, with Sterling selling off sharply this morning. The inflation undershoot has turned what was previously a likely Bank of England rate cut tomorrow into a near-certainty. The Pound is currently the weakest major currency, hitting multi-week lows against both the Euro and the Dollar as traders price in a more aggressive easing cycle extending into 2026.
All eyes will be on tomorrow's BoE (and ECB) interest rate announcement at lunchtime.
Wichtige Bewegungen
In the Eurozone, final CPI was confirmed at 2.2%, exactly in line with expectations. Business sentiment provided additional support, with the German Ifo Business Climate index ticking up slightly to 88.2.As a result, the Euro is showing defensive strength, particularly versus Sterling. With inflation tracking precisely as the European Central Bank had anticipated, there is less pressure for the ECB to match the Bank of England’s increasingly dovish stance. EUR/GBP has climbed to its highest level since the summer.
Markets are also continuing to digest yesterday’s delayed US Non-Farm Payrolls report, which showed job growth of just 64,000, while the unemployment rate rose to 4.6%—a four-year high.
The US Dollar remains on a softer footing, as the combination of slowing labour market momentum and stagnant retail sales reinforces expectations of a more dovish Federal Reserve outlook.
Erwartete Bereiche
- GBP/USD: 1.33 - 1.3350 ▼
- GBP/EUR: 1.1350 - 1.1390 ▼
- GBP/AUD: 2.0110 - 2.0130 ▼
- EUR/USD: 1.17 - 1.1730 ▲