The Great Britain pound tumbled today as the United Kingdom has entered deflation for the first time in more than 50 years. The currency had been moving mostly sideways ahead of the report.
The annual drop of the UK Consumer Price Index in April was not big — just 0.1 percent. Yet it was the first time when the UK entered deflation since 1960. The very negative report led to the third straight daily decline of the sterling against the US dollar.
GBP/USD dropped from 1.5652 to 1.5491 as of 11:50 GMT today, trading near the lowest level since May 11. GBP/JPY slid from 187.78 to 186.11 — also the lowest level in a week.
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