Foreign Exchange Daily Market Update 17/02/2016

Wed, February 17, 2016

Pound Declines After Inflation Decreases

The Pound declined on the back of data showing a slowdown in U.K. core inflation further decreased the prospect of a BOE interest-rate increase in 2016.

Sterling dropped to a two-week low against the Dollar and fell against all but two of its 16 major peers before a crucial EU summit in Brussels where the British government will try to reach a deal changing the terms of its membership. While the U.K.’s headline inflation rate for January increased to 0.3%, that’s still a fraction of the BOE’s 2% target, implying officials won’t be able to tighten policy for some time.

Sterling fell 1% against the Dollar to 1.4287 as of 4:45 p.m., after sliding to 1.4277, the lowest since Feb. 1. It declined 0.9% to 1.2838 against the Euro, its first drop in three days, and approaching the more-than-one-year low reached last week.

Data to look out for today.

09:30: GBP Unemployment Rate

09:30: GBP Jobless Claims

09:30: GBP Average Weekly Earnings

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PRESS RELEASE

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