Following a reading of the UK Consumer Price Index that was lower than anticipated, the GBP/USD pair fell below the 1.2680 level, landing at 1.2634 at the beginning of trade on Thursday. This resulted in a decrease in the value of the British Pound and the United States Dollar. In comparison to other major currencies, the pound sterling had the worst performance yesterday, falling by over half a percent after making a feeble recovery from its daily lows and ultimately finishing just below 1.2680. The Consumer Price Index reading for November revealed a considerable decline in inflation in the United Kingdom. The monthly inflation rate unexpectedly dropped to -0.2%, which was significantly lower than the market’s estimates of 0.1%. This is in contrast to the reading of 0.0% that was shown for October.

Here are seven suggestions to help you correct your self-assessment tax return. It is believed that the increase in existing house sales, which occurred in the United States during November, contributed to an increase in risk appetite in the market, which in turn caused the US Dollar to fall once more. This, in turn, put a stop to the daily decrease that had been occurring in the GBP/USD pair during trade on Thursday. Additionally, the Consumer Economic hopes Index increased to 110.7 from 101.0 in November, despite a little reduction. This suggests that consumers in the United States are cautiously optimistic about their hopes for the economy in December.

According to my point of view, the precipitous drop in inflation in the United Kingdom was brought about by reducing prices across the board in the economy. Just one week after temporarily pausing rate hikes, this may push the Bank of England to consider cutting interest rates. This would be a significant development. It is possible that the Federal Reserve and the European Central Bank would follow suit and ease monetary policy, which may put an end to a global economic downturn that could be the most severe since the crisis of 2008. Therefore, will the Bank of England’s posture be altered as a result of the weak inflation report? I think that the decline in inflation ought to put pressure on the central bank to reduce interest rates in the year that is already underway.