We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: US 500: 0.71% Wall Street: 0.66% FTSE 100: 0.54% Germany 30: 0.14% France 40: 0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/QW4TmgzMvC
  • 🇫🇷 Consumer Confidence Actual: 93 Expected: 92 Previous: 95 https://www.dailyfx.com/economic-calendar#2020-05-27
  • 🇫🇷 Business Confidence Actual: 70 Expected: 85 Previous: 68 https://www.dailyfx.com/economic-calendar#2020-05-27
  • USD/MXN remains caught in a choppy range, which generally has traders looking for a directional move frustrated. Get your $USDMXN technical analysis form @PaulRobinsonFX here: https://t.co/gCXqAEGVix https://t.co/fVb44SoBzx
  • Heads Up:🇫🇷 Consumer Confidence due at 06:45 GMT (15min) Actual: 93 Expected: 92 Previous: 95 https://www.dailyfx.com/economic-calendar#2020-05-27
  • Heads Up:🇫🇷 Business Confidence due at 06:45 GMT (15min) Actual: 70 Expected: 85 Previous: 68 https://www.dailyfx.com/economic-calendar#2020-05-27
  • 🇳🇴 Unemployment Rate Actual: 3.6% Expected: 4% Previous: 3.5% https://www.dailyfx.com/economic-calendar#2020-05-27
  • Heads Up:🇳🇴 Unemployment Rate due at 06:00 GMT (15min) Expected: 4% Previous: 3.5% https://www.dailyfx.com/economic-calendar#2020-05-27
  • EU Foreign Affairs Minister Josep Borrell: EU to weigh 'robust' message to China over Hong Kong, China wants to influence global public opinion -BBG
  • Japan total bond issuance is said to rise above 200 trillion #Yen -BBG
Forex News: Britons Expect Inflation to Rise Above 3% in Upcoming Year

Forex News: Britons Expect Inflation to Rise Above 3% in Upcoming Year

2012-12-07 10:07:00
Benjamin Spier, Technical Strategist
Share:

THE TAKEAWAY: Quarterly BoE inflation survey finds expectations for 3.5% -> Survey measures Britons’ forecasts for the next 12-months -> Sterling trading lower on weak production

Britons expect inflation to climb to 3.5% over the next 12 months according to the Bank of England’s quarterly survey. The expectations were higher than predictions for 3.2% inflation in August’s survey.

In October, inflation rose to a 5-month high of 2.7% because of the rising costs of tuition. Any inflation rate above the Bank of England’s 2.0% target could discourage the central bank from taking further monetary action. Just yesterday, the Bank of England kept the asset purchase target at 375 billion Euros, despite the bank’s earlier warning that the UK economy could slide into negative growth in Q4.

Sterling temporarily declined in forex markets following the simultaneous release of disappointing industrial production numbers. Production fell 0.8% in October, much lower than expectations for a 0.8% rise. GBPUSD quickly erased the losses and is now trading closer to 1.6040. Resistance could be provided at 1.6040, by the 61.8% retracement of the fall from November’s high to the month’s low.

GBPUSD 15-minute: December 7, 2012

Britons_Expect_Inflation_to_Rise_Above_3_in_Upcoming_Year_body_gbpusd.png, Forex News: Britons Expect Inflation to Rise Above 3% in Upcoming Year

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.