British pound under pressure on softer-than-forecast inflation data

The British pound came under pressure Wednesday as inflation data grew softer than forecast in August.

U.K. consumer prices slowed to 1.7% year-over-year growth in August from 2.1% in July, the Office for National Statistics said Wednesday. Economists polled by FactSet expected a 1.9% rise. Core CPI slowed to 1.5% from 1.9%.

That sent the pound GBPUSD, -0.3040% lower vs. the dollar and the euro GBPEUR, -0.0709% .

Andreas Steno Larsen, global currency and fixed income strategist at Nordea Markets, said the Bank of England nonetheless can’t take action because the possibility of a hard Brexit which could send prices spiking after Oct. 31.

The Bank of England meets to decide on interest rates on Thursday, with expectations of no change.

The U.K. FTSE 100 UKX, +0.06% meanwhile increased 0.3% to 7342.16.

Action was muted as traders waited for the key U.S. interest-rate decision, due at 2 p.m. Eastern , which is after the close of U.K. trading.

B&Q and Castorama owner Kingfisher KGF, -2.13% was active, losing over 1%, as the home improvement retailer reported a 6% drop in first-half underlying profit and said it would be taking an additional cost to clearing inventory.

Suicide bomber, gunmen attack government building in eastern Afghanistan

JALALABAD (REUTERS) – Gunmen and at least one suicide bomber attacked a government building in eastern Afghanistan on Wednesday (Sept 18), wounding nine people including a child and a woman, officials said.

Attackers detonated explosives outside the building, used for the distribution of electronic identity cards, in the city of Jalalabad in eastern Nangarhar province, said the provincial governor’s spokesman and a provincial council member.

Gunmen then poured into the building and fighting is ongoing, they said.

Oil Extends Losses After Saudi Comments

Oil prices slipped on Wednesday to extend losses from the previous session, though the downside remained limited as investors assess the risk of further escalation of conflict in the Middle East.

Global benchmark Brent crude slid half a percent to $64.23 a barrel, after plunging 6.5 percent on Tuesday. U.S. West Texas Intermediate (WTI) crude futures were down 0.55 percent at $58.77 a barrel, after tumbling 5.7 percent in the previous session.

Oil prices are down after Saudi Arabia sought to reassure markets, saying that full production would be restored by month’s end.

Energy Minister Prince Abdulaziz bin Salman said on Tuesday that average oil production in September and October would be 9.89 million barrels per day and that the world’s top oil exporter would ensure full oil supply commitments to its customers this month.

Earlier, there were fears that the outage in Saudi Arabia following weekend attacks on production facilities might take months to clear.

Meanwhile, U.S. President Donald Trump doesn’t want war with Iran and is looking for ways to get the Iranians back to the negotiating table- but Tehran seems inclined to “test the Trump administration,” according to Gerald Feierstein, a former U.S. Ambassador to Yemen.

Iran has sent the United States a diplomatic note denying any role in attacks on Saudi oil installations and warning it would respond to any action.

Gold Prices Little Changed Ahead Of Fed Decision

Gold prices were little changed on Wednesday and the dollar index held steady as investors awaited the outcome of a Federal Reserve meeting later in the day and looked for progress in U.S.-China trade talks.

Spot gold was virtually unchanged at $1,501.45 per ounce, while U.S. gold futures were down 0.3 percent at $1,509.05 per ounce.

The Federal Reserve is expected to announce a rate cut of at least 25 basis point to prop up slowing economic growth at the end of a two-day policy meeting later in the day.

Traders will pay closer attention to the accompanying statement for clues about the long-term outlook for rates.

On the trade front, investors remain skeptical about whether the next round of face-to-face talks between U.S. and Chinese officials this week would lead to a speedy resolution of a long-running trade dispute.

Walmart Relaunches Fashion Brand Scoop

Retail giant Walmart announced the exclusive relaunch of fashion boutique Scoop as its private brand.

Scoop, which was founded by Stefani Greenfield, had closed all 16 of its stores in New York City in 2016 amid growing rent prices.

Walmart’s Scoop brand now offers a curated collection of more than 100 trend-inspired styles, which are size-inclusive and incredibly affordable. Prices range from $15 for a graphic tee to $65 for a car-length teddy coat. The brand also offers footwear and handbags.

Customers can shop the full collection online at Walmart, while items will arrive in select Walmart stores early next year.

In a blog post, Denise Incandela, Head of Fashion, Walmart U.S. eCommerce, said, “I think our customers will also be amazed by the elevated details that typically come at a more premium price, like certified vegan leather and faux fur, fully lined outwear, unique denim washes and trim – including side-taping, metal studs and double needle-top stitching – and exceptional shoes and handbags.”

With the relaunch, Walmart expects to build “The Ultimate Closet” for its customers. The company already offers more than 600 brands. In February, Walmart announced the exclusive launch of denim brand Sofía Jeans by Sofía Vergara. Walmart has also partnered with comedian, TV personality and style-icon, Ellen DeGeneres on new, exclusive fashion line.

The company also offers 150 premium fashion brands, including Lord & Taylor.