News & Analysis at your fingertips.

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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • The Bitcoin/Ethereum ratio’s break to its lowest levels since August 2018 suggests that ETH may continue to outperform BTC in the coming weeks. Key levels to watch for Bitcoin and Ethereum. Get your $btc market update from @DanielGMoss here:
  • US Senate confirms former Fed Chair Janet Yellen as Treasury Secretary -AFP
  • 🇰🇷 GDP Growth Rate YoY Adv (Q4) Actual: -1.4% Expected: -1.7% Previous: -1.1%
  • Majority of US Senate votes to confirm Janet Yellen as Treasury Secretary, voting will continue - BBG
  • With latest round of GDP data, South Korea's GDP per capita is now ahead of Italy's. Into G7 territory for the first time.
  • Brief update on my $AUDNZD analyst pick: The pair has confirmed the break under near-term rising support from December 20-day SMA has been taken out 50-day sits below still, may still come into play as key support if losses extend
  • 🇰🇷 GDP Growth Rate YoY Adv (Q4) Actual: -1.4 Expected: -1.7% Previous: -1.1%
  • 🇰🇷 GDP Growth Rate QoQ Adv (Q4) Actual: 1.1% Expected: 0.7% Previous: 2.1%
  • Heads Up:🇰🇷 GDP Growth Rate YoY Adv (Q4) due at 23:00 GMT (15min) Expected: -1.7% Previous: -1.1%
  • Heads Up:🇰🇷 GDP Growth Rate QoQ Adv (Q4) due at 23:00 GMT (15min) Expected: 0.7% Previous: 2.1%
Forex: Pound May Rally as CPI Data Reduces Scope for BoE Easing

Forex: Pound May Rally as CPI Data Reduces Scope for BoE Easing

David de Ferranti, Currency Analyst

THE TAKEAWAY: The British Pound may advance if CPI is higher than expected as the scope for BoE easing may be limited, especially as credit conditions improve.

November’s UK CPI figure is tipped by economists to come in unchanged from October’s reading at 2.7%. However there may be room for a higher print which may lead to an appreciation in the sterling.

The Bank of England (BoE) had noted in their November policy minutes that they expected an increase in utility bills and tuition fees that could contribute to an increase in CPI of 1% by mid 2013. In addition there has been an improvement in credit conditions in the Eurozone with Italian and Spanish bond yields having fallen in the second half of the year.

The Monetary Policy Committee (MPC) had previously cited that high borrowing costs seen in Euro Area Member States posed risks to regional growth and medium term inflation. This partly led to their decision to add extend their quantitative easing by 50bn pounds in July.

Another rise in inflation from more idiosyncratic forces coupled with improved credit conditions may give the BoE less motivation to implement further monetary easing. This may prove bullish for the GBP in the medium term as other central banks add to stimulus measures.

On a technical basis we have witnessed the GBP/USD make a break above key resistance at 1.6180. There is now more potential for an advancement to the September high of 1.6310. Conversely, a move below the rising trend line from the November low may point to a decline to the next major support level at the psychologically significant 1.60 mark.

Pound_May_Rally_as_CPI_Data_Reduces_Scope_for_BoE_Easing_body_QpUlryg7EMmWJl8cIyEeWvDeNHDFn0EmJMhalwQMWPqCn3nnsA2Aua78-SqCw2KCPl5r5dH1jeyn-Zwq.png, Forex: Pound May Rally as CPI Data Reduces Scope for BoE Easing

Created Using FXCM Marketscope – Prepared by David de Ferranti

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