Pound regains strength following UK inflation report
City Index February 13, 2014 2:44 PM
<p>Bank of England Governor Mark Carney’s inflation report went down well with the pound yesterday after the Bank of England stayed with guidance and kept […]</p>
Bank of England Governor Mark Carney’s inflation report went down well with the pound yesterday after the Bank of England stayed with guidance and kept interest rates low until 2015. We have seen a rally of over 100 points and this has continued so far in the Asian session.
Overnight the Aussie dollar got a hammering after a worse than expected employment change and an increase in the unemployment rate sent it crashing down 100 points.
Today’s data will mainly be about the US were we see retail sales, which are expected to drop and unemployment claims, which are likely to stay the same as last time at 331k. In the EU the ECB monthly bulletin will be released, with a lot of talk of negative rates. This will be the key word and they are ready to act if need be.
Chinese CPI data will be released overnight, and one can expect a slight dip from 2.5% to 2.4%. This is one to bear in mind as it has a big influence over Asian currencies.
Supports 1.3570 1.3530 1.3470 | Resistance 1.3645 1.3680 1.3740
Supports 101.95 101.60 101.45 | Resistance 102.60 102.85 103.20
Supports 1.6570 1.6535 1.6480 | Resistance 1.6630 1.6670 1.6720
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.