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[UK Inflation Data Supports BOE’s Decision To Hold Rates]The UK’s January CPI Rose 3.0% Year-Over-Year, Marking The Highest Level Since March 2024 And Exceeding Market Expectations Of 2.8%. The Rise In Airfares, Food Costs, And Private School Tuition Fees Were The Main Drivers.However, UK Services CPI Came In Lower Than Expected At 5.0%, Below The Forecasted 5.2%, Which Helped Ease Market Concerns Over Inflation. This Has Led Markets To Continue Pricing In a Higher Likelihood Of a BOE Rate Cut In May Rather Than Holding Rates.Following The Inflation Data, GBP/USD Hit a 9-Week High Of 1.2641 On Wednesday Before The Report's Release, While GBP/EUR Reached a 2025 Peak Of 1.21.
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