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GBP/USD takes hit as UK inflation data well below forecasts

The UK August CPI and RPI inflation reports have just been released. It was noted here earlier, that the markets were expecting some sizeable increases in both, from the negative prints seen in July. Well, data has not delivered that at all and all the prints are lower than forecast. I will provide more detail later on all this. The pound was holding its breath in a tight range ahead of this release. It has now reacted sharply on the downside. The GBP/USD has immediately fallen to below 1.2350 on this news, as the outlook for the BOE to raise rates tomorrow takes a dramatic shift. The low seen so far has been set at 1.2334. That is a new interim low for the GBP/USD and it is just now at 1.2345

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