News Column

Pound Declines As UK Inflation Slows

June 17, 2014

BRUSSELS (Alliance News) - The pound fell against the other major currencies in European deals on Tuesday, as UK inflation slowed more-than-forecast in May.

The data from the Office for National Statistics showed that UK inflation slowed to 1.5% in May from 1.8% in April. The rate was down from forecasts for a 1.7% increase.

Inflation fell 0.1% on month, versus forecasts for 0.2% rise.

Input prices fell 5% on year, sharper than the 4.3% decline expected by economists. Output prices grew 0.5%, down from expectations for 0.7% rise.

The pound fell back to a 4-day low of 1.5214 against the franc, off early high of 1.5263. Against the euro, the pound the reversed from an early high of 0.7982, falling to a 5-day low of 0.8007.

The pound retreated from an early 4-day high of 173.28 against the yen and eased to 172.80.

The pound dropped to a 4-day low of 1.6937 against the greenback, from its previous high of 1.6986.

If the pound extends slide, it may find support around 0.81 against the euro, 1.68 against the greenback, 172.00 against the yen and 1.51 versus the franc.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Alliance News

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters