Inflation figures today
16 October, 2012
Yesterday’s markets saw most of the major currencies trading in a relatively range bound trough as there were very few economic releases and markets were listening out for hints of any developments within the eurozone.
The pound struggled to sustain any sort of strength as a string of UK data releases this week (starting today with inflation data) are set to give investors and indication of where the UK is in terms of recovery and certainly the release of the BoE minutes tomorrow will hint as to whether or not we can expect any further QE at next month’s meeting.
It’s quite clear that over the coming weeks we are likely to remain within a fairly tight range when it comes to exchange rates, especially those involving GBP, EUR and USD. In the States QE3 has already begun and though we would expect to see USD weakness many commentaries are pointing to the fact that QE3 may not actually have that much effect. In the UK we have seen positive data releases (quickly pointing to a UK recovery and positive 3rd quarter GDP figures) followed by negative data fuelling the need for further QE. And finally in Europe… who knows! The ‘will they won’t they’ question has been burning a hole in everyone’s pockets for months and it seems likely the market will remain unclear until something actually happens.
In these turbulent trading conditions it is very important that you keep in touch with your account manager here at Currency Index to try and ensure that you buy at the highs and sell at the lows.
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