Webinar: UK Inflation Beats Expectations, GBP Rises
- UK inflation was higher than expected in August, increasing the chances of tighter UK monetary policy in the months to come.
- That boosted the British Pound, which is now looking positive from a technical perspective, but hit London-listed stocks.
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The British Pound climbed Tuesday in the wake of UK inflation figures for August that came in higher than expected, making an interest-rate increase in the UK more likely in the months to come and thereby boosting the British Pound against both the US Dollar and the Euro.
No rate rise is expected at Thursday’s meeting of the Bank of England’s rate-setting monetary policy committee but traders should watch out for a more hawkish tone from BoE Governor Mark Carney that would pave the way for a rate rise in December or next year.
Chart: GBP/USD Five-Minute Timeframe (September 12, 2017)
--- Written by Martin Essex, Analyst and Editor
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.