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- Friday, 16 October 2009 23:58:24 GMT British Pound Looks to 3Q GDP to Keep the Bullish Momentum
- Wednesday, 14 October 2009 20:52:17 GMT British Pound Mostly Lower as Job Losses Add Up, Average Earnings Fall
- Wednesday, 14 October 2009 02:51:52 GMT UK Unemployment Rate to Hit 22-Year High, Boost Dovish BOE Outlook
- Monday, 12 October 2009 23:21:45 GMT UK House Prices Rose for Second Month in September, Says RICS
- Monday, 12 October 2009 20:06:38 GMT British Pound Down Despite Improvement in UK Trade Deficit, Rise in Producer Prices
- Friday, 09 October 2009 21:34:18 GMT British Pound Forecast Depends on Consumer Price Index Report
- Friday, 09 October 2009 02:52:54 GMT UK Producer Prices to Shrink Again, Hinting at Dovish BOE Ahead
- Thursday, 08 October 2009 23:31:59 GMT British Pound Comforted by Bank of England's Steady Hand
- Thursday, 08 October 2009 02:09:27 GMT British Pound Threatened as Bank of England Plots Policy Shift
- Wednesday, 07 October 2009 21:16:17 GMT British Pound Up Ahead of Bank of England Announcement - Neutral Stance Likely
- Tuesday, 06 October 2009 18:16:28 GMT British Pound US Dollar Exchange Rate Forecast
- Monday, 05 October 2009 19:42:45 GMT British Pound Remains Under Pressure Despite Strong UK Data
- Friday, 02 October 2009 23:34:27 GMT British Pound: UK Data, BOE Decision Present Breakdown Potential
- Wednesday, 30 September 2009 20:09:25 GMT Euro, British Pound Edge Higher in Choppy Day of Trading
- Wednesday, 30 September 2009 00:28:52 GMT British Pound Wins a Long Over-Due Relief Rally
- Saturday, 26 September 2009 01:58:01 GMT British Pound Losing its Risk Appeal as Conditions Deteriorate
- Friday, 25 September 2009 21:53:37 GMT British Pound the Weakest of the Majors as GBPJPY Break Below Key Support
- Friday, 25 September 2009 00:14:11 GMT British Pound Tumbles as the Outlook for a Robust UK Recovery Fades
- Wednesday, 23 September 2009 19:54:24 GMT British Pound Gains as BOE Minutes Reflect Emerging Optimism on UK Economy
- Wednesday, 23 September 2009 02:21:33 GMT Bank of England Minutes - Economic Data Preview
The British pound slipped throughout the day despite surprisingly strong UK inflation numbers, as the headline reading rocketed to the fastest annualized pace in at least 11 years.
Indeed, CPI growth accelerated to a 4.7 percent pace in August, which is well above the Bank of England’s 2 percent target and 3 percent limit. While oil prices may have fallen significantly during the survey period, gains in food, housing, and clothing costs picked up the slack. The news will be extremely disconcerting for the BOE, as they are already trying to grapple with tighter credit conditions and an economy teetering on the brink of recession. Indeed, this is much of the reason why Credit Suisse overnight index swaps are still pricing in over 100bps worth of rate cuts by the BOE during the next 12 months. However, the release of the minutes from the BOE’s September meeting on Wednesday morning could have a significant impact on these interest rate forecasts. During the August meeting, the minutes revealed that there was a 7-1-1 vote for the second consecutive month to leave rates at 5.00 percent, with one dissent in favor of a 25bp hike and one in favor of a 25bp cut. The vote this time around could easily be split again, so traders should watch out for a 8-1 vote (dissent in favor of rate cut) or a 6-2-1 (two dissents in favor of rate hike, one in favor of rate cut) as these will have the most severe impact on interest rate expectations. Biased comments within the minutes could skew the British pound’s reaction as well.
Related Articles: British Pound Interest Rate Forecast, 5 Key Events for the Forex Market This Week 09-15-08
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