Pound Holds Near HK$10.49 After UK Inflation Data
SingTao · 1 SOURCESabout 2 hours ago2 MIN
Summary
Sterling was quoted at about HK$10.490 against the Hong Kong dollar after the UK reported September CPI inflation of 3.5% year on year, slightly above the 3.4% expected by the market. After the data release, the pound briefly slipped from 10.494 to around 10.488 against the Hong Kong dollar. The currency has recently been one of the stronger performers among G10 currencies, supported by a tighter-than-expected UK labour market, stronger wage growth and concerns that energy shocks could keep inflation elevated for longer. Markets are also watching the Bank of England's November 5 meeting and the UK autumn budget on October 28 for the next direction in sterling
Key Points
- Britain reported September CPI at 3.5% year on year, slightly above the 3.4% market expectation cited in the report
- Following the inflation release, sterling briefly weakened from about HK$10.494 to around HK$10.488 against the Hong Kong dollar
- The pound was last quoted at HK$10.490, after recently trading within a HK$10.359 to HK$10.520 range
- Sterling was also quoted at US$1.3371 against the dollar, with a recent trading band of US$1.3204 to US$1.3408
- The report said markets see rising odds of a 25-basis-point Bank of England rate increase to 4% on November 5
Why It Matters
For Hong Kong travellers, students and families preparing for trips, study or relocation to Britain, even small moves in sterling can affect exchange costs when buying pounds through banks, money changers or card issuers. The next major catalysts identified in the report are the October 28 UK autumn budget and the November 5 Bank of England decision, both of which could influence whether sterling extends its rebound or comes under renewed pressure