The post Pound Sterling weakens as UK core inflation unexpectedly cools appeared on BitcoinEthereumNews.com.

The Pound Sterling (GBP) faces intense selling pressure against its major peers on Wednesday after the release of the United Kingdom (UK) Consumer Price Index (CPI) data for September. The Office for National Statistics (ONS) reported that the core CPI – which excludes volatile components of food, energy, alcohol and tobacco – grew by a less-than-expected 3.5% on an annual basis. Economists forecasted underlying price pressures to have risen by 3.7% against the prior reading of 3.6%. Headline inflation rose steadily by 3.8% on year, slower than estimates of 4.0%. On a monthly basis, prices remained flat after growing by 0.3% in August. Inflation in the services sector, which is closely tracked by the Bank of England (BoE), remained steady at 4.7%. Signs of easing price pressures would bolster market expectations of more interest rate cuts by the BoE in the remainder of the year. Last week, BoE dovish expectations increased after the release of the employment data for the three months ending August, which showed a higher jobless rate and a slowdown in wage growth. Daily digest market movers: Pound Sterling continues underperformance against US Dollar The Pound Sterling declines to near 1.3330 against the US Dollar during Wednesday’s European session. The GBP/USD pair extends its losing streak for the fourth trading day. The Cable slumps after the release of the UK inflation data, which showed signs that price pressures have peaked for now. Additionally, the strength of the US Dollar is also contributing to weakness in the GBP/USD pair. During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades firmly near Tuesday’s high around 99.00. The US Dollar edges up due to optimism that the United States (US) and China will reach a trade deal soon. US President Donald…

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Filed under: News - @ October 22, 2025 7:26 am