The pound has suffered broad falls this morning after the inflation rate for the month of October fell to a 13 month low form 2.7% to 2%.
This has been mainly caused the by transport prices falling by 1.5% partly due to fuel prices.
As a result the pounds gains against the euro from last week have been erased and against the US dollar we have the rate fall through a level which has supported the GBPUSD rate for the last two months.
The UK’s quarterly inflation report is due out tomorrow and if we see growth forecasts for the UK revised higher, we may well see pound claw back todays losses.
German inflation hit a three low following on from the falls in inflation from the Eurozone as a collective two weeks ago. The news backs up the European Central Bank’s decision to drop interest rate last week – so in sense the data was expected.
Data for the rest of the day is fairly subdued.