The U.S. dollar fell significantly after the U.S. inflation data and recorded its lowest level against a basket of currencies since August 28, as the dollar index reached 94.43, after the core CPI in August slowed to 2.2% on yearly basis after rising by 2.4% in July.
GBPUSD advanced after the Bank of England kept interest rates unchanged at 0.75%. The bank confirmed that any interest rate hike would be gradual and in a limited range amid uncertainty about Brexit talks. Sterling hit its highest level since 2 August at 1.3123.
The euro also benefited from the dollar's slide and hit its highest level since August 30 at 1.17. The ECB has kept its monetary policy unchanged, confirming its intention to end the bond buying program by this year.
China has welcomed an invitation from the United States to hold trade talks as the United States prepares to escalate a trade war with China by imposing 200 billion dollars on Chinese goods.
