The British Pound continues to lose momentum with the recent rally now far in the rear view mirror. The latest economic data was generally mixed, with market moving events failing to gain any impetus. The UK Office of National Statistics reported that December’s core inflation rate for December met analysts’ expectations at 3.0% (year-over-year), falling from 3.1% in the previous period. Producer price inputs also fell in December, hitting 4.9% on a forecast of a decline to 5.4% (from 7.3%). It was also reported that the housing price index was unexpectedly higher, rising to 5.1% against an expected decline, while the retail price index was higher than anticipated.
As reported at 11:10 am (GMT) in London, the GBP/USD was trading at $1.3754, down 0.30%; the pair had earlier hit a session trough of $1.3740, while the high is at $1.3806. The EUR/GBP is lower at 0.8880 Pence, down 0.1126%; the pair is off the session low of 0.88628 Pence, while the high for the trading day is now at 0.86152 Pence.
Eurozone and Canada in Focus
The inflation report for the Eurozone is due out tomorrow; currently, analysts are forecasting that both CPI and core CPI will remain flat for December, at 1.4% and 1.1%, respectively, year-over-year. Also out tomorrow is the Bank of Canada monetary policy report and interest rate decision. Analysts are predicting that that the BOC will raise its benchmark rate by 25 basis points to 1.25%. The USD/CAD is currently trading at C$1.2443, a gain of 0.1312%; the pair earlier hit a session trough of C$1.24140 while the high is at C$1.24463, not far from the current reading.