September 7, 2010 7:34 PM
UK Inflation Continues
0The British Retail Consortium Food Price Inflation reading hit a 13-month high in August, up 3.8% year over year, while the Shop Price reading rose 1.7% (YoY.) These readings continue to confirm the inflation and subsequent rate issues the Bank of England faces in the coming quarters as the recovery remains muted and job creation weak.
This inflation issue could create opportunities in the EUR/GBP pair. This week's risk aversion trade is reflected in the decline in the pair and this trend could continue significantly lower if rate hikes create a bit of a carry trade. Currently we see the pair sitting right below the 50% retracement of the latest move with the 4-100 hr moving average and 21 day mavg possibly providing support as they are both currently on the 61.8% retracement.
- BOE’s King says UK inflation to fall to around 2% by the end of 2011.
- ZEW comments
- Eurozone ZEW -8.1 (-32.5 prior).
- UK CPI Jan (y/y) 3.6% as expected.
- German economics ministry says OECD expects German GDP to rise 0.4% in 2012.
- French Prelim Non-Farm Payrolls (Q4) -0.2%, as expected.
- UK RICS House Price Balance Declines by -16% in Jan, Better than the -17% Consensus
- December 2008
- January 2009
- February 2009
- March 2009
- April 2009
- May 2009
- June 2009
- July 2009
- August 2009
- September 2009
- October 2009
- November 2009
- December 2009
- January 2010
- February 2010
- June 2010
- July 2010
- August 2010
- September 2010
- October 2010
- November 2010
- December 2010
- January 2011
- February 2011
- March 2011
- April 2011
- May 2011
- June 2011
- July 2011
- August 2011
- September 2011
- October 2011
- November 2011
- December 2011
- January 2012
