GBP/USD: UK Consumer Price Index

The British Pound fell against the Greenback 10 points or 0.07%, following the UK CPI data release. However, GBP/USD continued to increase to touch the intraday high of 1.3924.

The UK inflation remained near its strongest level in almost six years in January, underlying the challenge the BoE would face trying to get the inflation growth pace back to the 2% target. The 12-month UK inflation rate remained the same as of December 2017 at the 3% rate, while analysts expected the decrease to 2.9%. The combination of limited pay growth and high CPI, as well as unclarity surrounding the terms on which the UK will quit the EU next year is likely to mean that the country's economic expansion would be weaker than in the EU overall.