The UK released a raft of price data this morning, with weaker than expected results clearly weighing on the GBP. Economists at Scotiabank expect the GBP/USD pair to extend its decline towards 1.3675 after breaking below the 1.3785 support.

GBP weakens on softer than expected inflation data

“CPI rose 0.3% MoM in September, against expectations of a 0.4% gain, pushing the YoY rate of inflation down to 2.9% (from 3.0% in August). Core inflation eased to 2.9% from 3.1%. PPI data showed a 0.4% rise in input prices, well below forecasts of a 1.0% rise.”

“Cable has cracked minor support at 1.3785 (now resistance intraday) and should edge lower towards key support at 1.3675.”