Pound Falls On Soft U.K. CPI Data

Economic Indicators - The British pound weakened against major currencies as U.K. inflation slowed more than expected in November, with the consumer price index (CPI) rising 3.2% year-on-year, down from 3.6% in October [1] - On a monthly basis, the CPI dropped 0.2%, contrasting with a 0.4% rise in October, while core inflation softened to 3.2% from 3.4% [2] - Input price inflation accelerated to 1.1% year-on-year in November, up from a revised 0.8% in October, while output price growth slowed to 3.4% from 3.6% [3] Market Reactions - Markets are anticipating a potential rate drop from the Bank of England (BoE) due to weakening U.K. GDP, declining inflation, and improving labor market conditions [4] - European stocks traded lower following a decline in the S&P 500, influenced by economic concerns and tariff worries related to U.S. countermeasures against the EU [5] Currency Performance - The pound fell to a one-week low of 1.3312 against the U.S. dollar and a five-day low of 1.0625 against the Swiss franc, with potential support levels identified at 1.31 and 1.05 respectively [6] - Against the yen and euro, the pound edged down to 207.06 and 0.8797, with support levels near 205.00 and 0.88 respectively [7]