GBP-
UK inflation fell to a March 2025 low in January, according to figure released by the ONS this morning.
Food and transport proved to be the two biggest drops, whilst housing costs and alcohol also slowed their rate of inflation. The figures provide the ideal situation for doves of the Bank of England to assert themselves at the March meeting, making a 0.25% interest rate cut a near certainty.
The Pound has dropped against the Dollar, although remains elevated against the Euro as the FT this morning reported that ECB President Christine Lagarde that she was preparing to step down early.
The reason given for this was so that the European Government’s could replace her ahead of a likely poor run of elections in 2027, especially the French election in April, whether the right is currently pitted to come out in top. Such big rumours are naturally hurting the Euro, giving GBPEUR trades some vital time to get out before things get worse.
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