MUFG maintains a bearish and short GBP/USD exposure.
"The September inflation data has been released in the UK and there has been limited reaction to the weaker than expected print... The overall annual inflation rate slowed from 3.0% to 2.9% in September with goods inflation picking up only modestly from 3.3% to 3.4% while services inflation slowed from 3.0% to 2.6%," MUFG notes.
"In addition to the weaker inflation data, the pound has other news to deal with after the COVID data yesterday revealed an alarming 233 deaths from COVID, the biggest one-day total since early March. This followed a recent pick-up in infections as well with 44,145 cases reported yesterday," MUFG adds.