The Pound Sterling Live - The Heart-Beat of the British Pound

British Pound Sterling Live: GBP outlook deteriorates as UK inflation numbers undershoot expectations

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Category: The Pound Sterling Live - The Heart-Beat of The British Pound

Published on Tuesday, 21 May 2013 07:44

Written by Sam Coventry

9:30: UK inflation under expectations, GBP falls

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Good news for UK consumers. Bad news for those hoping for a strong pound as CPI for April is weaker than expected at 2.4 pct versus expectations of 2.6 pct, the lowest level since September 2012.

UK Core CPI falls to lowest level since 2009, GBP is lower as it increases the scope for more monetary stimulus at the Bank of England.

8:31: The British pound sterling (Currency:GBP) is seeing losses this morning

GBP is however well within recent ranges and will in all likelihood maintain these ranges ahead of today's inflation numbers.

The pound sterling to euro exchange rate is 0.11 pct in the red at 1.1831.
The pound to US dollar exchange rate is 0.09 pct down on Monday's closing rate at 1.5242.
The pound to Australian dollar rate is 0.2 pct lower at 1.5528.

Please be aware: The above quotes are taken from the wholesale spot markets - your bank will affix their own discretionary spread when passing on their rate. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering more currency. Please find out more here.

8:30: Inflation figures ahead

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In a morning outlook piece KBC Markets analyst Piet Lammens comments on today's key sterling driver, UK inflation:

"Today, the UK PPI and CPI data will be published. PPI is already a low levels and the CPI is expected to showing some easing (2.6% Y/Y from 2.8%). A bigger than expected decline in inflation might be seen as giving the BoE some additional room of manoeuvre in case they would feel the need to support the economy further. So, it could be a slightly negative for sterling."