There has been a change to the current down of Sterling weakness today, as some better than expected Inflation data has boosted the Pound vs the Euro as well as against most other major currencies as well.
The data showed that over the past year CPI (Consumer Price Index) Figures have increased by 0.6% up from 0.5% the previous year. This is a good sign that many weren’t expecting as it demonstrates that the overall cost of living is increasing which is a positive sign for an economy, which is why I’d imagine that Pound strengthened today.
Good news for the Pound was long overdue as the currency has been declining on almost a daily basis as of late. The implementation of an additional £80bn worth of Quantitative Easing, starting from the 4th of August has been the catalyst for this weakness, and from a personal standpoint I am struggling to remain optimistic regarding the Pound moving forward.
I think that should economic data out of the UK disappoint now that it’s in it’s post-brexit environment, investors will be more sensitive than usual to this news, and therefore we could see further sharp sell-off’s for the Pound should the data disappoint.
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