Inflation takes centre stage
15 April, 2014
Monday’s economic calendar was absent of any UK releases although at the weekend Rightmove announced that house prices have shown another increase up a further 2.6% in April bring the yearly increase up to 7.3%. This positive announcement combined with optimism for the week ahead from traders saw sterling make small gains against most major currencies as the day developed.
Yesterday’s headline figures were from the Euro-zone and the US. Euro-zone industrial production was up by 1.7% in February, slightly better growth than forecast but this failed to support the Euro as it continues to remain under pressure dropping from its recent peaks. As the US markets opened in the afternoon the latest US Retail Sales were posted far stronger than consensus. Retail Sales improved by 1.1% in March up from 0.7% previously.
Today it is inflation that takes centre stage with analysts predicting a headline rate of 1.6% for the UK that would be a drop from lasts months figure of 1.7%. This could put pressure on the pound if realised as low inflation historically has a negative impact on the currency in question as it restricts the room for interest rate hikes. At 1:30pm the US inflation results will be announced and these figures are expected to be much improved from last month which could give the greenback an opportunity to recovered recent lost ground against the pound.
While we see a strong data week, why not keep in touch with your Currency Index broker to take advantage of their expert knowledge and help you get the best rate possible when you transfer money overseas.;
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