The cost of living in the UK got harder Friday after CPI came in at 10.1% y/y up from 9.9% in August returning to the 40 year high reached in July. The biggest contribution was in food rises. The British Pound (GBP) depreciated post the release against the New Zealand Dollar (NZD) to 0.5110 ( 1.9560) where it closed for the week. Rishi Sunak is the UK new prime minister after months of carnage- he will lead the conservative party replacing Liz Truss who was only there for 44 days, Sunak will pilot a country struggling and divided by an economic downturn. The GBP pushed up Monday to 1.9950 (0.5010) in the face of rising equity prices, markets clearly seeing Sunak with more integrity and reliability. Meanwhile UK Manufacturing came in poor at 45.8 well under the 47.9 predicted reflecting poor output. We expect the prior low of 0.4925 (2.0300) should hold over the week.
Current Level: 0.5009 (1.9964)
Resistance: 0.5100 (2.0300)
Support: 0.4925 (1.9600)
Last Weeks Range: 0.4922-0.5112 (1.9561-2.0316)