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UK Inflation data hurts the pound

• Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
• May 24, 2018
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Sterling slid yesterday to a new five-month low after weaker-than-expected UK inflation dented the prospect of the Bank of England raising interest rates this year.

The pound had been one of the best-performing currencies in 2018 but it has given up all its gains for the year following a broad rally in the dollar and signs Britain’s economy is slowing.

Data on Wednesday showed annual consumer price inflation cooled to 2.4 percent, its weakest increase in over a year.

This morning we have the UK Retail Sales data being released. This is expected to come in at 0.4% compared to 1.1% last month, a figure lower and this will hurt the pound and we could see further losses.

UK gross domestic product figures due out on Friday will also be scoured for clues on monetary policy.