The Great Britain pound rose against all other major currencies (except euro) today, as the December inflation in United Kingdom surged above the expectations.
UK Office of National Statistics reported the consumer price index at 3.7 percent for December 2010 — above 3.3 percent November reading and 3.4 percent forecast by the major economists surveyed by Bloomberg. The value is also above the Bank of England target of 3 percent. Such inflation level (caused by the increase in sales tax) is very uncomfortable for the country’s monetary regulator and shows a high probability of the interest rate hike as early as this spring.
GBP/USD rose from 1.5885 to 1.5992 as of 12:05 GMT today, showing a daily high at 1.6059, which is the maximum since November 22. GBP/JPY went up from 131.34 to 132.04.
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