FOLLOW MARKETMOVES

GBP/USD update (18th Jan 2011, 12:15)

Sterling hit an eight-week high against the US dollar, following a bigger-than-expected increase in UK consumer confidence and CPI inflation.

According to a report from Nationwide, the consumer confidence index rose to 53 for December, from 45 in November, confounding expectations of a slight drop to 44. It would suggest that UK consumers remain optimistic about the economy in 2011 despite the rise in VAT and public sector job cuts, and could provide the Bank of England with a reason (cynics would say ‘an excuse’) to raise interest rates, since improved confidence could lead to higher spending, which would put further pressure on inflation. Meanwhile, data from the Office for National Statistics showed that the consumer price index rose to an eight-month high of 3.7%, up from 3.3% in November and ahead of the 3.4% expected by economists polled by Bloomberg. The news will mean that the pressure on the Bank of England has increased yet again, and Barclays Capital commented that there might be a shift in rhetoric at the bank to acknowledge inflation risks.

Core CPI, which strips out food and fuel prices, rose 2.9% year-on-year, which weakens the bank’s argument that prices are increasing because of temporary developments such as commodity price rises. Expectations of a rise in interest rates to counter inflation are becoming widespread, with Michael Fallon MP, a member of the Treasury Select Committee that oversees the Bank of England, saying that policymakers should start a series of gradual rises to avoid a sharp increase later in the year. The Bank has consistently said that inflation would return to the 2% target during 2011 and 2012, as temporary effects such as the VAT rise subside, but the pressure on Threadneedle Street has definitely been ratcheted up yet again as a result of this morning’s figures. Speculation about an early rate rise will likely drive sterling higher in the short term.

comments powered by Disqus

All Forex News

Trusted Firms

All Reviews
EUR/USD update (16th April 2014, 14:00) 16 Apr 2014

The euro is higher versus the US dollar, after the level of inflation in the eurozone remained unchanged in March.

GBP/USD update (16th April 2014, 13:00) 16 Apr 2014

UK unemployment has now dipped below 7%, the initial threshold level the Bank of England introduced in August but reneged upon last month, which has s...

EUR/USD update (15th April 2014, 15:00) 15 Apr 2014

Having popped its head above the $1.39 level at the tail end of last week, EUR/USD has found itself pulled back.

Market Comment 15th April 2014 15 Apr 2014

European equities are set to open flat as they’re caught between two competing poles of sentiment. 

AUD/USD update (14th April 2014, 18:00) 14 Apr 2014

The Australian dollar is gaining ground against the US dollar, as traders prepare for the latest minutes release from the Reserve Bank of Australia.

EUR/USD update (14th April 2014, 16:00) 14 Apr 2014

The euro is under pressure against the US dollar as tensions in eastern Ukraine weigh on the currency.

Market Comment 14th April 2014 14 Apr 2014

European equities are set to start on the back foot as last week’s negative sentiment remains firmly intact. 

GBP/USD update (11th April 2014, 16:00) 11 Apr 2014

After touching $1.68 yesterday, sterling has dropped back, hit by weaker UK construction output figures.

EUR/USD update (11th April 2014, 16:00) 11 Apr 2014

If we see the euro close above $1.39 today, then it will be the icing on the cake for the currency, which has enjoyed a remarkable week.

Market Comment 11th April 2014 11 Apr 2014

European equities are set to open lower tracking overnight declines in the US. 

EUR/USD update (10th April 2014, 12:00) 10 Apr 2014

Momentum has taken EUR/USD higher as a steady flow of economic data has been released over the week.

Market Comment 10th April 2014 10 Apr 2014

European equities are set to show modest gains on the open due to a dovish FOMC Meeting minutes overnight. 

AUD/USD update (9th April 2014, 19:00) 9 Apr 2014

The Australian dollar has reached a new high for 2014 prior to tonight's Federal Reserve minutes release.

EUR/USD update (9th April 2014, 18:00) 9 Apr 2014

The EUR/USD has pulled back from the $1.38 mark as traders have taken their profits from two days of gains.

Market Comment 9th April 2014 9 Apr 2014

European equities are set to open mixed as traders continue to tread cautiously. 

GBP/USD update (8th April 2014, 14:00) 8 Apr 2014

Today’s strong UK manufacturing and industrial production data has helped sterling gain ground against the US dollar.



Share this with your friends

To:
From:
Your comments:

GBP/USD update (18th Jan 2011, 12:15)

Sterling hit an eight-week high against the US dollar, following a bigger-than-expected increase in UK consumer confidence and CPI inflation.

Read more »

Connect to successful traders – join Marketmoves.com free now

Log In or Sign up

Facebook User?

You can use your facebook account to sign up with Live streaming sport.

Connect with facebook
Remember me.
Did you forget your password?