Sterling tumbles after CPI of 4.2%

Tuesday, 12 July 2011 12:45

U.K released Consumer Price Indices earlier today, measuring the change in the price of goods and services purchased by consumers.  The release was expected at 4.5% as May's CPI, rather than 4.2% that was the actual report released today for June. 

Retail Price Index was announced at 5.0% in June, while expectations stood at 5.2% as in May.

Further announcements reported that U.K's "seasonally adjusted deficit of trade in goods" was released at 8.5 billion Pounds in the month of May, while 7.3 billion Pounds was expected.

Sterling tumbled after Britain's releases, as GBP/USD fell by over 70 pips in just minutes from 1.5850.  The pair fell as low as 1.5794.