The correction in the GBP/USD currency pair came after UK inflation data reportedly slipped below the central bank's target in January 2019. The pound weakened around 0.1 percent to around 1.2884 against the US dollar in mid-European session (13/February), but has not yet emerged from the shadow of the previous daily candle. 

The correction in the GBP/USD currency pair came after UK inflation data reportedly slipped below the central bank's target in January. Nevertheless, Sterling is still superior versus the Yen and tends to be stable against the Euro, due to the high interest in market risk today and the small projected impact of the inflation data. Learn forex through free forex learning classes at Didimax.

The UK Office for National Statistics (ONS) reports that the Consumer Price Index (CPI) fell to the level of 1.8 percent (year-on-year) in January. This figure is lower than 2.1 percent achieved in the previous period, while missing expectations. It was also the first time that Britain's inflation rate fell below the 2 percent target set by the central bank, in the past two years.

The Producer Price Index (PPI) data is no less lackluster. Input PPI slipped from 3.2 percent to 2.9 percent (year-on-year), while PPI Output dropped from 2.4 percent to 2.1 percent in the same period. The decline in the inflation rate was caused by the fall in crude oil prices at the end of last year which had an impact on lower fuel prices in the country. 

PM May Struggles to Speed Up Ratification, Pound Rises Thin

PM May delivered an optimistic statement regarding the Brexit agreement. The Pound tried to rise from a three-week low against the US Dollar. On Tuesday (12/February), PM Theresa May made an optimistic statement; that the British government will look for ways to accelerate the ratification of the UK divorce agreement from the European Union, if the implementation time is too tight.

PM May Struggles to Bridge EU and British Parliament

Time is running while PM May is still trying to persuade the European Union to amend the Brexit agreement. Hopefully, policy makers in the UK can immediately approve it before reaching the 'exit' deadline on March 29. The stalemate and several delays that occurred during the Brexit process further raised concerns among financial investors. 

Reporting from Reuters, May told policymakers to temporarily refrain from panic over the Brexit problem, and gave him time to negotiate with the European Union and the British parliament. He also said that the parliament would not hold a vote to revise the agreement this week. This was also confirmed by a British media, which wrote that there would be no new voting at least until the end of this month.

Pound Sterling Seeks to Remove From 3-Month Low Level

Since the beginning of February, GBP/USD has continued to decline due to the bearish sentiment stemming from the poor UK economic data and Brexit uncertainty. The delay (the signing of the Brexit agreement by the British parliament) which is even longer will not be accepted by the business sector. 

However, the Prime Minister's mother seems to be working hard to reach an agreement, given the parliamentary majority has lacked options," said Michael Hewson, analyst at CMC Markets . Conditions on the edge of this kind have made the Pound slip to a three-month low against the US Dollar.

However, news of May's optimistic statement, coupled with little influence from BoE Governor Mark Carney's speech this evening, has injected little energy into the Pound. When this news was written, GBP/USD strengthened 0.25 percent to 1.2890 on the Daily time frame. Mark Carney said that Brexit will bring fundamental changes to the global economy.