UK Holds CPI, Eyes Turn To US And Europe

Albeit this is above the BoE target off 2% – which it has been above since November 2009. This was not seen as a negative result, and as such the pound held its ground against both the USD and the Euro with little movement in these pairings seen. Today continues the busy week of data releases with European and US CPI released, but also the Feds’ Beige Book which is a telling indicator of the U.S economic situation. With UK CPI holding all eyes will be on these reports, and whether or not the U.S and/or Europe are recovering and who is doing so fastest. It would certainly seem at a time where economic recovery is vital not only domestically but on a global scale, any negative data is largely effecting economic recovery as market swings and sentiment are exacerbated. Interestingly both the U.S and European CPI reports are predicted to hold steady, and if this is the case movements in these pairings could remain fairly stagnant. However, if one does come in bullish (positive), whilst the other is bearish (negative) it is likely we will see movements, most notably in the EUR/USD. Furthermore, with the very important Federal Beige Book released later in the day, USD pairings could be volatile, as this report gives a good indication of the U.S economic situation, and the fiscal cliff they seem to have so far avoided in the short term. If you have any upcoming transfers to make, make sure you speak to your Currency Index broker to make sure you stay ahead of the market.