Lackluster U.K. Consumer Price Index (CPI) to Fuel GBP/USD Losses

U.K. Consumer Price Index (CPI) to Narrow to Annualized 2.9% from 3.0% in December.

Core Rate of Inflation to Uptick for First Time Since August 2017.

Trading the News: U.K. Consumer Price Index (CPI)

DailyFX Calendar

Updates to the U.K. Consumer Price Index (CPI) may spark a mixed reaction in GBP/USD as the headline reading for inflation is expected to downtick for the second consecutive month in January, while the core rate of inflation is projected to increase to an annualized 2.6% from 2.5% in December.

Signs of easing price pressures may fuel the recent decline in GBP/USD as it encourage the Bank of England (BoE) to keep the benchmark interest rate on hold, and the central bank may merely attempt to buy more time at the next meeting on March 22 as ‘any future increases in Bank Rate are expected to be at a gradual pace and to a limited extent.’ However, figures pointing to sticky price growth may push Governor Mark Caney and Co. to prepare U.K. households and businesses for higher borrowing-costs as ‘the Committee judges that, were the economy to evolve broadly in

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