The GBP rose during yesterday’s trading session to open at 1.2669 against the USD this morning. The Pound slipped against the Euro in preparations for a no-deal Brexit. According to data published by the Office for National Statistics yesterday, domestic CPI inflation slowed from 2.4% to 2.3% last month. While this was in line with market expectations, this was the slowest pace of inflation in 20 months. This drive appeared to be due to weaker price growth in recreational products such as video games and toys, as well as a downturn in oil prices.
This is part of a series of releases as the Bank of England prepares to make its final rate decision of the year. Later tonight the ONS will release further information regarding retail sale values, followed by the interest rate vote by the Bank of England. The expected forecast is for all 9 MPC members to vote to hold rates, which is the same outcome as the previous month.