The GBP/USD exchange rate retreated from the peak to start a downward trend after a decent UK economic data. The Sterling weakened against the US Dollar by 12 base points to keep falling to the intraday low and start consolidation nearing the 1.3200 level.
The Office for National Statistics revealed the UK consumer inflation matched growth forecasts with a 3.0% pace in September, as Brexit continued to boost the cost of living in the country. Meanwhile, the strong CPI figure is set to make the Bank of England’s interest rate increase virtually certain. In addition, the release showed that the inflation rate was 0.9% above the wage growth pace, suggesting that the squeeze on incomes has become tighter.
