Trading the News: U.K. Consumer Price Index An uptick in the headline & core U.K. Consumer Price Index (CPI) may spur fresh monthly highs in GBP/USD as it raises the Bank of England’s (BoE) scope to remove the record-low interest rate sooner rather than later. What’s Expected: Why Is This Event Important: BoE Governor Mark Carney may sound increasingly hawkish over the coming months as the ...
It appears that well supported BoE rate expectations continue to keep currency downside limited from current levels. In that respect it must be noted that medium-term inflation expectations, as measured by 5Y forward breakeven rates, remain close to multiweek highs. Unless forward looking indicators suggest moderating price developments it appears unlikely that the BoE will turn more cautious anytime soon. ...
The U.K. unemployment rate fell less than expected in the August to October period, data from the Office for National Statistics showed Wednesday. The jobless rate fell to 6 percent during August to October, down from 6.2 percent seen in the May to July period. Economists had forecast a rate of 5.9 percent. During August to October, there were 1.96 million unemployed, 63,000 fewer than in the May to July period. This was ...
- Bank of England (BoE) Widely Expected to Reduce Growth, Inflation Forecast. - Will the BoE Inflation Report Drag on Interest-Rate Expectations? Trading the News: Bank of England (BoE) Inflation Report Trading the Bank of England (BoE) Inflation report may not be clear cut even with expectations for a downward revision in the central bank’s growth/inflation forecast as Governor Mark Carney continues to prepare U.K. households and businesses for higher borrowing-costs. ...
A big week ahead in the markets, where the emergence of an unexpected correction has seen volatility return with a bang. The focus within the US markets will be geared towards the CPI release in the wake of the disinflationary worries that have dominated affairs in recent weeks. Meanwhile the UK GDP figure is likely to push forward talk of whether rates should move despite tumbling inflation. On the other hand, the eurozone has a somewhat quiet week, where a whole raft of PMI figures look set to ...
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