Sterling falling on surprise UK inflation decline.
GBPUSD under the bearish pressure today reflecting the widespread bearish sterling sentiment after data showed a surprise decline in inflation in Britain in February. British consumer price inflation fell to 0.4% in February from 0.7% in January, in the biggest annual drop in clothing prices since 2009. In response to this British two-year government bond yields hit one-month low and briefly dipped below zero when trading started after the release of weak inflation data – which is a bearish signal for the sterling. The a strengthened dollar on rising bond yields and the European Union considering a ban on COVID-19 vaccine exports to Britain are the other bearish factors weighing on this currency pair.
Expect sellers on upward corrections.
Next support to watch – 1.3625
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