Foreign Exchange Daily Market Update 17/11/2016

Thu, November 17, 2016

Inflation Target Will Soon Be Hit Despite October Fallback

BOE Governor Mark Carney said the latest unforeseen slowing of inflation doesn’t change the viewpoint that the rate of price increases will pass the BOE’S target soon.

The Pound’s Brexit-induced fall is driving up import costs, though the pass-through to consumer prices may take some time, Carney said. Public worry about prices has advanced among high-profile hikes in the cost of products e.g. changes to the triangular shape of Toblerone chocolate bars. The BOE this month stated inflation will go above the 2% target next year and stay there until the end of the decade.

Consumer-price growth was 0.9% compared with 1% in September. The rate was predicted by economists to accelerate to 1.1%. The cost of goods leaving factory gates surged 2.1%, the fastest annual pace since April 2012. Input prices spiked by 4.6%, the biggest monthly increase since records began in 1996.

The Pound rose against the Dollar this morning to 1.2491. Sterling was little changed against the Euro at 1.1642.

Data to look out for today.

Not Much Data Out Today

CURRENCY PAYMENTS MADE SIMPLE

PRESS RELEASE

KBRFX was mentioned in the Essex Chronicle for the top 100 companies by turnover in Essex http://www.essexchronicle.co.uk/100-Essex-businesses-revealed-annual-survey/story-25140555-detail/story.html

Data Releases