UK inflation remains flat for January
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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 ▼