Sterling fell in European trade on Thursday against a basket of major rivals, resuming losses after a two-day hiatus and approaching a 14-month nadir.
- Gold rate today: MCX gold rate hits YTD high on renewed US Fed rate cut buzz
- IRCON International share price rose 8.11% to a highest level of ₹205.99
- Spot Gold price touches the target $2700
- As Expected MCX Copper Hit 834.35 Boom
- Gold prices rise to near one-month high on hopes of interest rate cut
The pound is still under pressure due to the prospects of lower UK interest rates in February, as investors await crucial growth data later today to assess the odds.
The Price
The GBP/USD pair fell 0.25% today to $1.2208, with a session-high at $1.2248.
The pound rose 0.25% on Wednesday away from a 14-month trough at $1.2099.
UK Inflation
UK consumer prices rose 2.5% y/y in December, missing estimates of 2.6%, and down from 2.6% in the previous reading.
Core consumer prices rose 3.2%, below estimates of 3.4%, and down from 3.5% in the previous reading.
It shows how inflationary pressures are receding from BOE policymakers, with the bank likely to welcome such developments.
UK Rates
Following the data, the odds of a Bank of England interest rate cut in February rose from 60% to 80%.
Traders expect 65 basis points of UK rate cuts overall in 2025.
Later today, important GDP growth data will be released and will impact the pricing for future BOE rate cuts, with the growth rate estimated at 0.2% in November, compared to a 0.1% dip in October.
