GBP under pressure as UK inflation remains sticky – BBH
Pound Sterling (USD) is on the defensive as UK December CPI shows mixed signals, with core inflation steady and services inflation slightly below expectations, BBH FX analysts report.
BOE rate cuts priced in, GBP faces headwinds
"GBP is trading on the defensive against USD and EUR. UK December CPI inflation was mixed. Headline CPI rose to 3.4% y/y vs. 3.2% in November, which was one tick higher than consensus (3.3%) but one tick less than the BOE’s forecast (3.5%). Core CPI unexpectedly printed at 3.2% y/y (consensus: 3.3%) for a second consecutive month while services CPI increased less than expected to 4.5% y/y (consensus: 4.6%) vs. 4.4% in November."
"Overall, persistently above target UK inflation suggests the Bank of England (BOE) can afford to wait before resuming easing. The swaps curve price-in over 80% odds the BOE delivers a total of 50bps of rate cuts to 3.25% over the next twelve months which is a headwind for GBP."
Related Articles
Netflix Slumps as All-Cash Warner Bid Drains the Buyback Tank
TradingKey - After hours on January 20 ET, Netflix (NFLX) released its Q4 2025 earnings report. Despite both revenue and earnings beating expectations, the stock slumped nearly 5% after hours, retreating to its lowest level since the panic of last April.
JGB Yields Break 4%. Sanae Takaichi’s Political Gamble Is Setting Off a Massive Wave of Global Capital
TradingKey - A bombshell hit global financial markets on Tuesday as the yield on Japan's 40-year government bond (JGB) returned to the 4% threshold for the first time in 30 years, marking a record high since the maturity was first issued in 2007. This bond market turmoil coincided with Prime Ministe
AGI Approaches: 2026 May Be Artificial Intelligence Turning Point, Musk Warns White-Collar Class Will Bear the Brunt
TradingKey — Have you noticed that the pace of artificial intelligence evolution is exceeding the limits of human intuitive perception? From the debut of ChatGPT to the rapid rise of multimodal AI systems, the development of AI technology has demonstrated a non-linear, exponential acceleration in just a few short years. Technological replacement cycles are compressing, and an era defined as a "historical turning point" may be upon us.
2026 Silver Run: When the Paper Game Collapses and Silver Returns as a Strategic Asset
TradingKey - Silver is quietly breaking away from paper markets as AI, nuclear power and central banks all start fighting for the same limited pile of real metal.
Silver Frenzy Returns: Gold-Silver Ratio Falls Below 50 for First Time in 14 Years — Why Is Goldman Going Long?
TradingKey - Spot silver prices broke through the $90/oz mark this week, while the gold-to-silver ratio—a key indicator measuring their relative value—briefly fell below 50, hitting a 14-year low.