Pound slides on UK inflation data

Sterling skidded to a two-month low against the dollar after a
report showed UK inflation slowed in October, raising doubts the
Bank of England (BoE) will raise interest rates.

The
dollars to pounds exchange rate moved higher as the consumer
price index inched ahead at its slowest pace in more than a year
last month.

GBP/USD had eased 0.5 per cent to 1.5894 by Wednesday
morning (November 13th) ahead of the BoE’s quarterly
inflation report, published later in the day.

Sterling also extended its three-day losing streak against
the euro. EUR/GBP gained 0.7 per cent to hit
0.8453.

Inflation slid to 2.2 per cent in October from 2.7 per cent in
the previous month, the Office for National Statistics said.

BoE policymakers have pledged to keep interest rates low as long
as inflation remains anchored to its two per cent target level.

Elsewhere, the Australian dollar skipped to a two-month low
against its US counterpart on mounting speculation the Federal
Reserve will begin tapering stimulus from December.

AUD/USD fell for a fourth straight day, sliding to
0.9292. 

Meanwhile, the New Zealand dollar snapped its losing streak as
the country’s Reserve Bank governor said the kiwi could strengthen
once interest rates begin rising next year.