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
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