UK Inflation Reaches 9-Year High Pushing the Pound Upwards

On Wednesday, the Pound experienced a day of wavering movement although it did manage to make gains by the end of trading.

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It was announced that inflation had surged to 3.2% and this was put down to low base effects of the Eat out to Help Out campaign from last August while rising prices also limited the gains that were made. According to the Foreign Exchange Market the Pound finished at 1.1719 against the Euro and 1.3852 against the US Dollar.

The Euro was a little less fortunate yesterday as it trended lower against many of its rivals and even a rise of 1.5% in industrial output couldn’t help to bolster the single currency. Despite this figure beating forecasts, it seems as though investors had other ideas and this saw the currency edge lower during the afternoon.

The US Dollar was mainly range bound yesterday as it was influenced by a mixed market mood and resistance following the poor CPI release on Tuesday. During August, US core inflation eased month-on-month which put an end to hopes that the ongoing high inflation would force the Federal Reserve to tighten monetary policy.

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