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GBP/USD: Inflation and the Pound — What Does the UK CPI Report Tell Us?
The UK inflation data put pressure
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The UK inflation data put pressure on the British pound. The GBP/USD pair fell to the lower end of the 1.33 handle, briefly updating a weekly price low in response to the negative release. Nearly all components fell short of forecasts, pointing to softening price pressures. This outcome has increased market expectations that the Bank of England may cut interest rates by 25 basis points at its next meeting in November—or at the very least hint at such a move
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