On Thursday (Oct 20), / fell, temporarily trading at 1.1203, down 0.16%.
Pressure intensified as UK inflation unexpectedly accelerated in September, breaking double digits again.
Data showed the UK grew 10.1 per cent in September from a year earlier, returning to a 40-year high, above market expectations of 10 per cent and up from 9.9 per cent in August.
Even excluding volatile food and fuel prices, Britain’s core CPI rose 6.5 percent year-on-year in September, beating expectations of 6.4 percent and from 6.3 percent in August.
Double-digit inflation has also put further pressure on the Bank of England to raise interest rates. At 10.1 per cent, inflation is more than five times the boe’s 2 per cent target and has cemented expectations of a sharp rise of at least 75 basis points when the Bank meets on November 3.
GBP/USD pressure: 1.160—-1.120 Support: 1.090—-1.0550 Risk of deeper recession with UK government in disarray.
