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17 Dec 2013
Flash: Will the UK follow global trend of slowing inflation? - Investec
FXstreet.com (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec notes that today we have UK Inflation data out in the form of the CPI and RPI indices.
Key Quotes
“After the slowing in inflation last month it will be interesting to see whether the UK follows the global trend of slowing prices.”
“Analysts think that there is a chance of this happening, but with an energy price squeeze and a consumer led recovery under way, we would expect any slowing in inflation to be less pronounced than with our Euro-area neighbours. November CPI from the Euro-Area at 10am along with German Zew surveys could be the catalyst the EUR needs to pop through 1.38 against the USD.”
“We then have UK CBI Trends Survey at 11am followed this afternoon by what many commentators consider a key piece of data, US CPI at 13:30. A weak reading could be enough of a reason to put off tapering, whereas a price pick up could spur on 'taper talk' for tomorrow. As such we could see some volatility in USD crosses.”
Key Quotes
“After the slowing in inflation last month it will be interesting to see whether the UK follows the global trend of slowing prices.”
“Analysts think that there is a chance of this happening, but with an energy price squeeze and a consumer led recovery under way, we would expect any slowing in inflation to be less pronounced than with our Euro-area neighbours. November CPI from the Euro-Area at 10am along with German Zew surveys could be the catalyst the EUR needs to pop through 1.38 against the USD.”
“We then have UK CBI Trends Survey at 11am followed this afternoon by what many commentators consider a key piece of data, US CPI at 13:30. A weak reading could be enough of a reason to put off tapering, whereas a price pick up could spur on 'taper talk' for tomorrow. As such we could see some volatility in USD crosses.”