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
Oil - US Crude
Wall Street
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The Hang Seng suffered its worst day since 2015 on Friday on China anti-sedition proposal. Get your market update from @FxWestwater here:https://t.co/CMQ1UTewiF https://t.co/FSeumhbZn3
  • Trump says he will announce action on China before the week is over - BBG
  • Alright, so a breakout higher then in my #WallStreet index despite negative RSI divergence. This may have opened the door to revisiting peaks in average US stock prices from early March. Rising support from mid-May seems to be guiding the index higher (pink line) https://t.co/2dbegpLr7v
  • BOC's Poloz: - Policy from fiscal and monetary side set base for economic recovery - Uncertainty around virus remains -BBG
  • 🇰🇷 Business Confidence Actual: 49 Previous: 52 https://www.dailyfx.com/economic-calendar#2020-05-26
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 1.69% 🇳🇿NZD: 1.60% 🇨🇦CAD: 1.50% 🇪🇺EUR: 0.78% 🇨🇭CHF: 0.65% 🇯🇵JPY: 0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/QHpL43u1ca
  • archive of today's webinar ready to go https://t.co/dCPU3X7BvY
  • Trump says virus vaccines and remedies are going to be here 'very shortly' - BBG
  • Heads Up:🇰🇷 Business Confidence due at 21:00 GMT (15min) Previous: 52 https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:🇨🇦 BoC Gov Poloz Speech due at 21:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-05-26
British Pound Hits Day's High After Stronger Than Expected Inflation Data

British Pound Hits Day's High After Stronger Than Expected Inflation Data

2017-01-17 10:27:00
Martin Essex, MSTA, Analyst

Talking Points

- UK inflation in December rose to 1.6%, above the forecast 1.4% and the previous 1.2%

- Core inflation also climbed to 1.6%, above the expected 1.4% and the previous 1.4%

- Sterling climbed in response, as did the yield on the 10-year UK government bond

- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.

The British Pound jumped against the US Dollar and the yield on the benchmark 10-year UK government bond, or Gilt, climbed after news of stronger-than-expected UK inflation in December. The headline rate was 1.6%, its highest since July 2014 – above the forecast 1.4% and the previous month’s 1.2%. The core rate was also 1.6%, its highest since August 2014 and above both the expected 1.4% and November’s 1.4%.

Inflation was boosted by higher air fares and the weakness of sterling, and in response GBPUSD firmed to 1.2188, its strongest level since Friday.

Chart: GBPUSD 1-Minute Timeframe (January 17, 2017)

British Pound Hits Day's High After Stronger Than Expected Inflation Data

EURGBP rose initially but then fell, while the 10-year Gilt yield climbed to 1.288% from 1.272% just before the data.

While the markets are likely to be dominated today by UK Prime Minister Theresa May’s speech on Brexit, due later in the session, the data showed that economics as well as politics remain an important driver of foreign exchange rates.

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him atmartin.essex@ig.com

Don't trade FX but want to learn more? Read the DailyFX Trading Guides.

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


News & Analysis at your fingertips.