Sterling slipped under the key $2 for the first time in seven weeks after U.K. inflation slowed more than forecast last month. The release reduced market speculation of another interest- rate increase from the Bank of England.
[B][I]U.K. Inflation Unexpectedly Falls Below BOE Target[/I][/B]
The U.K.'s inflation rate unexpectedly fell last month below the Bank of England’s 2 percent target for the first time since March 2006, weakening the case for another interest-rate increase. Consumer prices rose 1.9 percent from a year earlier, down from 2.4 percent in June, the Office for National Statistics said today in London.
-Source: Bloomberg
[B][I]Control Zone Set Up Around Kent Farm[/I][/B]
The government set up controls round a farm in Kent on Tuesday because of a suspected case of foot and mouth disease, raising fears that an existing outbreak of the livestock disease may not have been contained. Animal health experts were investigating the suspected case reported in Kent, to the east of Surrey where the highly infectious animal disease was found and hundreds of animals culled earlier this month, officials said.
-Source: Reuters UK
[B][I]Pound Below $2 After Inflation Data[/I][/B]
Sterling fell below $2 for the first time in over six-weeks on Tuesday as expectations for further UK interest rates rises tumbled after inflation data came in far weaker than expected. UK consumer price inflation fell to 1.9 per cent in July, below the Bank of England?s 2-per-cent target for the first time since March 2006 and well below expectations for a 2.3 per-cent reading.
-Source: Financial Times
[B]< DailyFX Research Team>[/B]