0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bullish
Low
High
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
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • 🇨🇳 FDI (YTD) YoY (JUL) Actual: 0.5% Previous: -1.3% https://www.dailyfx.com/economic-calendar#2020-08-13
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/6b3JtrSQnP
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/9:30 AM GMT to learn about how you can become a better trader. Register here: https://t.co/WeWGKtdlyz https://t.co/4hIQtGPL0N
  • Gold Prices May Resume Selloff After Digesting Largest Drop in 7 Years - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2020/08/13/Gold-Prices-May-Resume-Selloff-After-Digesting-Largest-Drop-in-7-Years.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #XAUUSD #gold https://t.co/aWOvE1KJXc
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.83%, while traders in US 500 are at opposite extremes with 77.46%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/EQ77jevtaX
  • Heads Up:🇫🇷 IEA Oil Market Report due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-08-13
  • Hey traders! I'm sure you've all heard about trend trading. Sharpen your knowledge here: https://t.co/jkliL5sxj7 https://t.co/QPW1os7wbE
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Silver: 0.98% Gold: 0.60% Oil - US Crude: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/gDZGfvBOHv
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.31% 🇨🇭CHF: 0.22% 🇬🇧GBP: 0.21% 🇦🇺AUD: -0.01% 🇨🇦CAD: -0.03% 🇳🇿NZD: -0.20% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/9IwXKOUieT
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.16% US 500: -0.17% Germany 30: -0.24% France 40: -0.50% FTSE 100: -0.96% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/MtMyrT3zZY
British Pound Eyes December High on Raised Inflation Concerns

British Pound Eyes December High on Raised Inflation Concerns

2017-02-01 12:04:00
Nick Cawley, Strategist
Share:

Talking Points

- Imported UK inflation will need to be watched closely by a central bank with little near-term monetary flexibility.

- Stronger Sterling could help the Bank of England steer the economy.

- 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.

UK factory cost inflation hit a 25-year high, data showed Wednesday, a day ahead of the Bank of England’s policy meeting and quarterly Inflation Report. The latest Markit UK manufacturing PMI edged a touch lower to 55.9 in January compared with 56.1 in December but the input price balance jumped sharply to a record high of 88.3 from the prior month’s 77.7. The cost of raw materials has been fueled by a sharp drop in the value of the British Pound against both the US Dollar and the Euro, as well as higher oil and commodity prices.

The data point to UK inflation hitting 3% in 2017, a level that may cause BOE Governor Mark Carney to consider tightening monetary policy, or at least expressing his concerns to the financial markets. And Carney will also have to weigh up worries that higher UK prices may crimp consumer spending as households increasingly feel the squeeze on their purse strings. UK growth is expected to be dampened by upcoming Brexit talks, although recent data show that these worries have yet to hit the bottom line, with recently released preliminary 4Q UK GDP expanding at a robust 0.6% quarter/quarter.

The Bank of England will announce its latest monetary policy measures Thursday - all expected unchanged - before releasing its latest quarterly Inflation Report with the MPC likely to upgrade inflation and growth expectations.

While the central bank will have to be alert to any inflation overshoot, something the Governor says he will have limited tolerance for, a rebound in Sterling may help to dampen input price costs. GBPUSD dropped sharply in the wake of the UK decision to leave the EU, and despite edging off its lows the UK currency steadfastly refuses to price in the strong UK economic data released since June last year. UK growth in 2016 of 2% (preliminary) showed the UK economy growing at the fastest rate of all G7 countries, while services and manufacturing figures continue to defy fears of a Brexit slowdown. Any heightened official rhetoric on higher inflation expectations in the UK, and warnings from any MPC official, could see GBPUSD push quickly back to its December high of 1.2775 before the late October high, and big figure change, of 1.3000 hoves into view.

Chart: GBPUSD: 3-Hour Timeframe (February 2016 – February 2017)

British Pound Eyes December High on Raised Inflation Concerns

Now read: Brexit Briefing: GBP/USD Well Placed to Rally After Vote in Parliament

--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@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.

DISCLOSURES

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.