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The GBP/USD pair is trending lower, reflecting the market's risk-averse sentiment.

The British pound sterling, in its pairing with the US dollar, is once again in a downward trajectory. The current GBP/USD exchange rate stands at 1.2130.

Global risk aversion is putting pressure on the British currency.

In recent days, the UK has released a substantial amount of economic data, with a particular focus on price-related indicators. Notably, the growth in average monthly wages, excluding bonuses, dipped to 8.1% in August, falling short of both the anticipated 8.3% and the previous month's 8.5%.

The UK is grappling with price-related challenges. In September, inflation remained at 6.7% year-on-year, despite expectations for a decrease to 6.6%. On a monthly basis, the consumer price index increased by 0.5%, in line with expectations. For context, in August, monthly inflation had risen by 0.3%.

Core prices have receded, but not as significantly as projected. In September, the figure stood at 6.1% year-on-year, against expectations of 6.0% and the previous reading of 6.2%. On a month-on-month basis, core prices increased by 0.5%, as anticipated, following a 0.1% expansion in August.

Of particular interest, the producer purchase price index declined to -2.6% year-on-year in September, while the selling price index rebounded to -0.1% year-on-year.

The pricing landscape appears notably uncertain, with the potential for both improvement and significant deterioration. This uncertainty presents a risk factor for the GBP.

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The post GBP Faces the Potential of Significant Decline: Overview for October 19, 2023 appeared first at R Blog - RoboForex.

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By: Anna Rostova
Title: GBP Faces the Potential of Significant Decline: Overview for October 19, 2023
Sourced From: blog.roboforex.com/blog/2023/10/19/gbp-faces-the-potential-of-significant-decline-overview-for-october-19-2023/
Published Date: Thu, 19 Oct 2023 07:55:10 +0000

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