Talking Points

- 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.

Check out our Trading Guides: they’re free and have been updated, with several new ones now available including Forex for Beginners, Building Confidence and Traits of Successful Traders

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)

Webinar: UK Inflation Beats Expectations, GBP Rises

Chart by IG

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him at

Follow Martin on Twitter @MartinSEssex

For help to trade profitably, check out the IG Client Sentiment data

And you can learn more by listening to our regular trading webinars; here’s a list of what’s coming up

Like to know about the Traits of Successful Traders? Just click here

Or New to Forex? That guide is here