The Pound Sterling (GBP) struggled against its major counterparts on Wednesday, despite a surprising increase in UK inflation. The Office for National Statistics reported that inflation rose to 5.4% in December, surpassing expectations and prompting some analysts to speculate about future monetary policy adjustments. However, this news failed to bolster the GBP, which was trading at 1.3550 against the USD and 1.1740 against the EUR.
Market sentiment remained wary, leading to a decline in the GBP/USD exchange rate as traders focused on broader economic uncertainties. The lingering effects of Brexit and global economic pressures continued to weigh on the currency. As the market digests this inflation data, investors will closely monitor the Bank of England’s next moves, which could influence the GBP's performance in the coming weeks.
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Data Source: FX Killer Analysis Team Updated: 2026-01-21 11:26
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.