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
Bullish
Oil - US Crude
Bearish
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
Bullish
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Fed's Rosengren says the #Fed has been clear that negative interest rates are unlikely to be used
  • Back from vacation and back on schedule Going live for today's stock market webinar in 10 minutes - https://t.co/rmwDABTiN2 https://t.co/oC3Igu2muT
  • I've seen three more headlines today suggesting that there is significant money still on the sidelined despite the climb in markets. Is the assumption that some small tech milestone or new headline would excite investors to pay record amounts to get into a stretched market?
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.57% 🇪🇺EUR: 0.41% 🇨🇦CAD: 0.40% 🇳🇿NZD: 0.14% 🇬🇧GBP: -0.16% 🇯🇵JPY: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/3mZjwCXcwc
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 2.39% France 40: 1.37% US 500: 1.29% Germany 30: 1.14% Wall Street: 0.97% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/3rljxp4YdZ
  • Heads Up:🇺🇸 Fed Kaplan Speech due at 15:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-08-12
  • Poll: What do you think set off Gold's sharp tumble yesterday - its largest single-day plunge since the April 2013 crash? Answering this question for yourself can help you decide whether this is a temporary waver or the impetus for a new trend.
  • Uber CEO says a temporary shutdown in California is possible according to CNBC $UBER stock price largely indifferent thus far
  • 🇺🇸 EIA Cushing Crude Oil Stocks Change (07/AUG) Actual: 1.336M Previous: 0.532M https://www.dailyfx.com/economic-calendar#2020-08-12
  • 🇺🇸 EIA Distillate Stocks Change (07/AUG) Actual: -2.322M Expected: 0.357M Previous: 1.592M https://www.dailyfx.com/economic-calendar#2020-08-12
Pound Looks Past Soft Shop Prices, Growth Downgrade as BOE Looms

Pound Looks Past Soft Shop Prices, Growth Downgrade as BOE Looms

2017-02-01 02:35:00
Daniel Dubrovsky, Analyst
Share:

Talking Points:

  • British Pound little changed on a worse than expected UK BRC Shop Price Index reading
  • A simultaneously released NIESRsummaryforecasted GDP growth slowdown, CPI pickup
  • The Bank of England’s “Super Thursday” event could draw more attention from traders

Have a question about trading the markets? Join a Q&A webinar and ask it live!

The British Pound showed a tepid reaction versus its major peers as January’s UK BRC Shop Price Index crossed the wires worse than expected. Retail outlet inflation clocked in at -1.7% y/y versus -1.0% expected and -1.4% in December. This reading reversed a trend of steady price improvements since August 2016.

Looking at the details, some of the largest drops came from non-food related products such as clothing and furniture, which changed from -5.7% to -6.3% and from -1.2% to -2.7% respectfully.

Simultaneously, the National Institute of Economic and Social Research (NIESR) released their UK economic forecast summary. This said that GDP growth is expected to slow down from 2 percent in 2016 to 1.7 percent this year. Then, it should pick up to 1.9% in 2018.

NIESR also expects CPI to average 3.3% in 2017 before slowing down to 2.9% in 2018. The pickup in prices is expected due to Sterling’s sharp depreciation against a broad basket of currencies following the Brexit referendum.

Looking ahead, the Bank of England’s “Super Thursday” is in the spotlight. The central bank will release an updated quarterly inflation report and Governor Mark Carney will hold a press conference to explain it. The minutes and outcome of a monetary policy meeting will also be unveiled.

In its most recent interest rate decision, the BoE signaled that monetary policy could respond in either direction depending on how economic conditions unfold in the aftermath of the referendum. As Currency Analyst David Song mentioned, Thursday’s event may shake up the near-term GBP/USD outlook should Carney show a greater willingness to gradually move away from its dovish bias.

Pound Looks Past Soft Shop Prices, Growth Downgrade as BOE Looms

Source: NIESR

GBP/USD 15-Minute Chart (GMT)

Pound Looks Past Soft Shop Prices, Growth Downgrade as BOE Looms

Chart compiled via IG Trading Platform

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.