Foreign Exchange Daily Market Update 15/02/2017

Wed, February 15, 2017

Pound Falls As UK Inflation Misses Analysts Forecasts

U.K. inflation picked up less than economists precited last month as clothing-store discounts kept the rate from achieving the BOE’s target.

The increase in the rate to 1.8% from 1.6% in December fell short of the expected 1.9%. Sterling fell and traders pared bets on a BOE interest-rate hike by the end of 2017.

While less than anticipated, inflation is still running at the fastest pace in more than two years. Rising fuel costs coupled with a weaker pound are set to push it above the BOE’s 2% goal soon, with some economists predicting it will hit 3% by the end of the year. In a sign of the upward pressure, annual growth in factory input costs surged to the fastest since 2008.

Sterling was down 0.4% against the Dollar at 1.2452 as of 10:05 a.m. Sterling Was little changed against the Euro at 1.1779.

Data to look out for today.

13:30: USD Consumer Price Index

13:30: USD Advance Retail Sales

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

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