Pound Sterling turns volatile against US Dollar as UK inflation cools down expectedly
The post Pound Sterling turns volatile against US Dollar as UK inflation cools down expectedly appeared on BitcoinEthereumNews.com.
The Pound Sterling (GBP) trades highly volatile around 1.3560 against the US Dollar (USD) during the European trading session on Wednesday, following the release of the United Kingdom (UK) Consumer Price Index (CPI) data for January. The Office for National Statistics (ONS) has reported that inflationary pressures have cooled down expectedly. UK’s headline inflation has dropped to 3% Year-on-Year (YoY), as expected, from 3.4% in December. The core CPI – which excludes the volatile components of food, energy, alcohol and tobacco – grew expectedly by 3.1%, slower than the previous reading of 3.2%. Month-on-month (MoM) headline inflation has declined 0.5% expectedly after growing 0.4% in December. In the policy meeting earlier this month, the Bank of England (BoE) stated that price pressures would ease to around “3% in Q1 2026, and closer to 2% in Q2″.Soft UK CPI data is expected to prompt dovish BoE expectations for the March policy meeting. Investors brace for more volatility in the British currency as the UK Retail Sales data for January and the preliminary S&P Global Purchasing Managers’ Index (PMI) data for February are scheduled to be published on Friday. Meanwhile, the US Dollar (USD) trades slightly higher ahead of the release of the Federal Open Market Committee (FOMC) Minutes at 19:00 GMT. During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is up 0.12% to near 97.22. This week, investors will also focus on the United States (US) preliminary Q4 Gross Domestic Product (GDP) data, which will be released on Friday. Inflation FAQs Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as…
Filed under: News - @ February 18, 2026 8:23 am