ING: UK Inflation Trend Supports Weaker Sterling
ING strategists note that despite slightly higher core data, underlying UK inflation is moving in the right direction, which should keep the pound under pressure.
GBPUSD
ING's Chris Turner cites UK economist James Smith's assessment that domestically generated inflation in the UK is heading in the right direction. While core inflation came in slightly above expectations, falling food and petrol prices along with softer core services inflation point to easing price pressures.
This trend is seen as supportive for a softer sterling, as the Bank of England may have more room to ease policy. The pound could face further headwinds if the data continues to show disinflation progress.
Source: FXStreet Forex News