The Pound climbed yesterday on higher inflationary figures, as the Office for National Statistics reported that the Consumer Price Index was at 1.8% in July, significantly higher than the forecasted 1.5%. This proves that the Pound has been far more resilient in this economic crisis than many analysts had forecast. This led currency analysts to the conclusion that the Bank of England (BoE) may come up with a much more disciplined monetary policy in the near future.
The British currency jumped against the Dollar by 200 pips to the 1.6550 level, and the GBP/JPY pair rose by 200 pips to the 157.00 level, as demand for the lower-yielding/safe-haven JPY fell in Tuesday's trading. The GBP gained about 90 pips vs. the EUR, as the pair reached the 0.8535 level. Much of this was owed to data from Britain. Also, it proves that even the strong European economic data on Tuesday was unable to help the EUR make inroads into the GBP. The EUR/USD finished trading slightly higher near the 1.4130 level, despite making inroads into the Dollar in earlier trading.
Today, there are several economic publications that are expected to drive-up the GBP and EUR crosses. From Britain, there is the MPC Meeting Minutes and CBI Industrial Order Expectations at 08:30 GMT and 10:00 GMT respectively. From the Euro-Zone, there is the release of the German PPI figures at 06:00 GMT, and the publication of the Current Account at 08:00 GMT. These key releases are expected to set the trend for both the British and Euro-Zone currencies in today's trading. In order to make big profits today, it's advised that you open your EUR and GBP positions now.