Tag Archives: key
Important day for the Pound – Trade balance and key inflation figures
Good morning readers,
A quick post this morning as I can see a busy day in the office, this morning at 09:30am brings key inflationary data which could be critical as to what the Bank of England do next with interest rates.
Although high inflation appears to be a global problem, should figures come out higher than expected then I still believe we will see Sterling strength and an increased possibility of a rate hike in the U.K sooner rather than later, for those who are not aware a rate hike is generally seen as positive for the currency concerned and markets move on rumour as well as fact.
Couple this with Trade Balance figures coming out at the same time and it does lead to an eventful morning, last time out the Trade Balance was worse than expected and should this happen again we may see this hold back any Sterling strength.
The other side of the coin this morning is that if inflation is lower than last month and appears to be naturally dropping we may see Sterling weakness as it reduces the need for a rate hike.
Expected is 4.4% for CPI and personally although the day has started off with weakness for the Pound I feel we will be up by the end of the day against most majors, however you never know…..
