Foreign Exchange Daily Market Update 12/12/2016

Mon, December 12, 2016

Rate Hike Expected As Inflation Grows

Almost two-thirds of analysts see the BOE increasing its benchmark from a record low as policy makers confront inflation that could exceed their 2% target as soon as the second quarter of next year.

Mark Carney’s ambition to uphold the economy as the U.K. alters to Brexit is being made difficult by an expanding inflation threat after a crash in the pound. The degree of that risk was displayed on Friday when a BOE survey showed consumer expectations for price growth have rose the most in more than six years.

Inflation presumably increased to 1.1% percent in November which is a level about half of its target. While the BOE sees an abrupt pickup next year, to a peak of 2.8% in early 2018, it forecasts price growth will ease after that. Some economists see inflation peaking sooner and higher, rising over 3% by the second quarter of next year.

The Pound fell over the weekend against both the Dollar and the Euro to 1.2567 & 1.1859.

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