Sterling strengthened yesterday against the euro and US, Canadian and New Zealand dollars, by between 0.25 and 0.50%, following the inflation figure released first thing.
While the US’s higher-than-expected inflation sent the dollar surging on Tuesday, the UK’s lower-than-expected data did no damage to sterling.
Also in the news, the £150bn energy plan to relieve soaring energy costs for the next two years will not be in place by 1 October, as expected. The prime minister’s spokesperson said there could be a “delay of weeks” as an entirely new scheme is having to be constructed.
There are no key data releases in the UK today, but tomorrow will see retail sales data for August. The markets are currently expecting a 0.4% fall in retail sales month over month after an unexpected 0.3% rise in July.
