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17/10/2018 – This Morning’s Exchange Rates

• Posted by currencies in Rate Alerts
• October 17, 2018
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The exchange rates are listed at the bottom of this article. Please note they are for indication only. For a live quote please contact us.

Sterling drops notably just after September consumer inflation data came in lower than expected. Headline CPI slowed to 2.4% yoy, down from 2.7% yoy and missed expectation of 2.8% yoy.

Core Inflation slowed to 1.9% yoy, down from 2.1% yoy and missed expectation of 2.1% yoy.

The ONS noted that “The largest downward contribution to the change in the came from food and non-alcoholic beverages, where prices fell by 0.1% between August and September 2018 compared with a rise of 0.8% between the same two months a year ago.

The main effects came from meat where prices fell, between August and September, this year but rose a year ago and from chocolate.

Also released, RPI slowed to 3.3% yoy versus prior 3.5% yoy and expectation of 3.5% yoy. PPI input rose to 10.3% yoy from 9.4% yoy. PPI output rose to 3.1% yoy from 2.9% yoy. PPI output core rose to 2.4% yoy from 2.2% yoy.

On Tuesday, the ONS said the basic wages of workers rose at their fastest pace in nearly a decade over the summer months.

That backed up the Bank of England’s view that a long period of weak pay increases is ending, and that it should raise interest rates in response.

The BoE expects inflation will drift down but will remain just above its 2 percent target in two years’ time as it gradually raises borrowing costs.

GBP/EUR 1.1349

GBP/USD 1.3136

GBP/AED 4.8181

GBP/AUD 1.8370

GBP/CHF 1.3013

GBP/CAD 1.7001

GBP/NZD 1.9943

EUR/USD 1.1553

GBP/ZAR 18.609