Tuesday, January 16, 2018 5:07 AM EDT
Inflation in the UK slides to 3% y/y as expected. Month over month, this is an advance of 0.4%. Other figures were mixed: core inflation dropped from 2.7% to 2.5%, more than forecasts. PPI also fell short of expectations with a marginal rise of 0.1% while PPI Output came out ahead of projections with 0.4%. All in all, there were no big surprises here.
GBP/USD slips from around 1.3780 to 1.3762, extending the correction. Update: after the initial slide, Sterling stabilizes as the news was generally not a shocker.
The UK was expected to report annual inflation of 3% in December after 3.1% in November, a minor slide.
GBP/USD slipped off 1.38 ahead of the publication, as the US dollar was making attempts to recover. The greenback suffered from a massive sell-off that accelerated on Friday despite an OK inflation report from the US.
Even the pound, with all the worries about Brexit and clear signs of a slowing economy, benefitted. Pound/dollar reached the highest levels since before the EU Referendum on June 23rd, 2016.
Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and ...
more
Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and the trader's level of experience should be carefully weighed before entering the Forex market. There is always a possibility of losing some or all of your initial investment / deposit , so you should not invest money which you cannot afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market. Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch's authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur. Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit or loss, which may either arise directly or indirectly from use of such information.
less
How did you like this article? Let us know so we can better customize your reading experience.