The opening of the European market session this afternoon saw pressure return to hit the Pound Sterling following the published focus economic data.
Being a focus for the central bank, the UK consumer price index data for September registered a decline to 3.1% after hitting a 9 -year high of 3.2% in the previous month’s reading.
The decline in the UK's annual inflation rate was seen to be affected by the hotel and restaurant sector, which is still in the process of recovering after the pandemic following the 'Eat Out to Help Out' scheme carried out last August.
Pound investors are beginning to be wary of the release of such UK inflation data which is seen to influence policy-making decisions by central banks.
Earlier, the Bank of England (BOE) had given a positive signal for policy tightening delivered by Governor Andrew Bailey.
However, inflation data that is the focus of the BOE is likely to slow the momentum towards the tightening of the policy after recording a declining reading.
However, investors are still waiting for a clearer signal with some thinking the Pound’s decline is likely to be only temporary.
Over the weekend, UK manufacturing and services sector data will be focused on assessing the health of the UK economy which will also influence the current movement for the Pound Sterling.
