Inflationary Surprise Impacts GBP: Overview for December 21, 2023

<div><img width="360" height="360" src="https://blog.roboforex.com/wp-content/uploads/2023/06/GBPUSD_3-360×360.jpg" class="attachment-thumbnail size-thumbnail wp-post-image" alt="GBP/USD analysis today" style="margin-bottom: 15px;" decoding="async" loading="lazy" /></div><p>The <a href="https://roboforex.com/beginners/info/charts/forex/gbpusd/" data-internallinksmanager029f6b8e52c="36" title="GBP/USD">GBP/USD</a> pair is experiencing a decline after the unveiling of surprising <a href="https://blog.roboforex.com/blog/2022/06/30/what-is-inflation-reasons-and-consequences/" data-internallinksmanager029f6b8e52c="220" title="Inflation">inflation</a> data.</p>

<p>The British pound sterling, in conjunction with the US dollar, is facing downward pressure, with the current GBP/USD exchange rate at 1.2639.</p>

<p>November's UK inflation report brought unexpected revelations: the consumer price index dipped to 3.9%, contrary to the anticipated 4.4%, and core inflation receded to 6.3% from the prior 6.6%. These notable shifts caught the central bank off guard, particularly as core inflation was not projected to decrease until the spring of the coming year.</p>

<p>In response to these developments, investors are adjusting their expectations, now foreseeing a potential <a href="https://blog.roboforex.com/blog/2019/10/22/trading-news-how-to-earn-on-interest-rates/" data-internallinksmanager029f6b8e52c="90" title="Interest rate">interest rate</a> cut by the Bank of England moving from June 2024 to May.</p>

<p>As the anticipated <a href="https://blog.roboforex.com/blog/2022/03/04/divergence-and-convergence-in-trading-how-to-use-signals/" data-internallinksmanager029f6b8e52c="308" title="Divergence, Convergence">divergence</a> in interest rates between the Bank of England and the US Federal Reserve softens, the pound is experiencing a natural decline.</p>

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<a href="https://my.roboforex.com/en/register/">Open Trading Account</a></p><p>The post <a href="https://blog.roboforex.com/blog/2023/12/21/inflationary-surprise-impacts-gbp-overview-for-december-21-2023/">Inflationary Surprise Impacts GBP: Overview for December 21, 2023</a> appeared first at <a href="https://blog.roboforex.com">R Blog – RoboForex</a>.</p>