The Pound Sterling got no reprieve from the recent pressure, despite the latest economic news which showed June inflation date rising at both a year-on-year and month-on-month basis. According to the UK’s Office of National Statistics retail prices rose to 0.4% on a monthly basis and 1.6% on an annual basis, compared to expectations of 0.2% and 1.5%, respectively. After the June Brexit vote, arguments were being made for the need for more easing from the Bank of England and this news gives the Monetary Policy Committee some breathing room.
As reported at 10:55 am (BST) in London, the GBP/USD was trading at $1.3206, down 0.34%; the pair has been trading in a tight band today, and ranged from a session low of $1.317 to a high of $1.327. The EUR/GBP was up 0.31% to trade at 0.8381 Pence; today’s range saw a low of 0.835 Pence and a high of 0.839 Pence.
Aussie Dollar under Broad Pressure
The Aussie Dollar slumped 1% and hit an 11-day trough on speculation that the Reserve Bank of Australia could provide more stimulus at next month’s policy meeting. The latest reading of the RBA minutes showed that policy makers are considering a looser policy, and markets are hedging their bets in favor of one with a 55% probability. The AUD/USD was trading at $0.7492, down 1.18%. A decline in risk appetite and a recent fall in the price of oil is also weighing on the Aussie.