-

GBP/USD: Sterling steady after UK inflation miss, eyes retail data

The pound treaded water Thursday after slipping Wednesday when UK inflation undershot forecasts. Consumer prices held at a 4.0% annual rate in January, unchanged from December and below economists’ 4.2% estimate. Sterling fell 0.2% against …

The pound treaded water Thursday after slipping Wednesday when UK inflation undershot forecasts. Consumer prices held at a 4.0% annual rate in January, unchanged from December and below economists’ 4.2% estimate. Sterling fell 0.2% against the dollar to $1.2565.

Bulls now look ahead to Friday’s UK retail sales data for January, seen rebounding 1.5% after December’s 3.2% dive. A bigger-than-expected recovery could lift sterling by supporting hawks opposed to Bank of England rate cuts before August.

Read More News:
Gold prices remain below $2,000 ahead of key U.S. data

The pound’s retail respite comes after GDP data showed the UK entered a technical recession in H2 2023. Sterling fell Wednesday as the economy shrank 0.3% in Q4, worse than expected, after a 0.1% Q3 contraction.

Near-term sterling may remain under pressure amid recessionary winds. GBP/USD traded at $1.2557 Thursday morning before U.S. data that could spur further declines.

Sign up for Investomania

Subscribe to the Investomania newsletter to have our daily recap delivered directly to your inbox.

No spam. Unsubscribe anytime.