GBP/USD Recovers, But Possibility of a Rate Cut by BOE Rises After Weak Inflation Report - Forex News by FX Leaders
GBP/USD Recovers, But Possibility of a Rate Cut by BOE Rises After Weak Inflation Report

GBP/USD Recovers, But Possibility of a Rate Cut by BOE Rises After Weak Inflation Report

Posted Thursday, January 16, 2020 by
Arslan Butt • 1 min read

The Pound has recovered slightly is trading somewhat steady on Thursday against the US dollar after declining on the back of a disappointing inflation report release in the previous session. At the time of writing, GBP/USD is trading around 1.304.

UK consumer prices rose by 1.3% YoY during December, a lower rate than the 1.5% YoY seen in the previous month and lower than economists’ forecast for a reading of 1.5%. Despite the holiday season, December’s figures marked the smallest rise in consumer prices in over three years.

The weak inflation figures have further raised concerns that the BOE could soon announce a rate cut. Recent comments from the central bank officials have hinted at such a possibility in the face of recent disappointing economic data releases – both GDP and industrial production figures which released earlier this week came in weaker than expected.

For now, the likelihood of a 0.25% rate cut by the BOE this month have gone up to 60% from 49% before the inflation report had released.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
The broad-based US dollar will end this week on a bullish track amid hopes that the Fed will start tapering its bond purchases as soon as...
1 week ago
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments