© Reuters. The pound declined from a peak after inflation
Investing.com – The pound has surged on Monday against the dollar, after statistics showing that inflation in the Uk remained close to its highest level in six years in January, reinforcing expectations of a rate hike by the Bank of England in the coming months.
The book has touched a maximum of 1,3900 immediately after the data, since 1,3883 earlier. The gains have decreased, and the GBP / USD was trading at 1.3882 to 04:58 AM (09:58 AM GMT).
The annual inflation rate remained unchanged at 3.0% in January according to the Office for National Statistics Reported. Economists expected a reading of 2.9%.
The decrease in fuel prices was offset by the fact that the prices of cultural goods and services do not decrease as quickly as in the previous year, the report said.
The Bank of England took markets by surprise last week after having declared that interest rates should rise sooner and slightly more than the BoE had previously predicted.
Markets are now at 70% the chance of a rate hike of a quarter point in may and approximately 50% of a further increase in rates later this year.
The euro remained slightly lower against the pound sterling, with a decline of 0.11% to 0,8873 against 0,8879 prior to inflation.
The dollar remained on the defensive after the us government presented on Wednesday its new budget of $ 4.4 trillion of the budget plan 2019, which showed that the federal deficit u.s. would reach about $ 1 trillion next year.