Foreign Exchange Daily Market Update 21/03/2017

Tue, March 21, 2017

Pound Rises As Inflation Soares

 U.K. inflation increased more than economists expected last month, soaring through the BOE’s target for the first time in more than three years.

Inflation rose by 2.3% in comparison with the forecast of 2.1%. This was the fastest since September 2013 and well above the median prediction. The rate is up from just 0.3% last year, reflecting sterling’s 17% decline since the Brexit vote in June, as well as an increase in oil prices.

Core inflation increased to 2%t, the fastest since 2014. The report also marks the end of almost three years of food-price deflation, with prices rising an annual 0.3%. The last such increase was in April 2014.

Input costs at factories soared to an annual 19.1%, while producer prices rose 3.7% which is the most in five years. As a result to this economic date the BOE expects consumer-price inflation to near the 3% mark by the end of the 2017.

The Pound rose to 1.2449 against the Dollar. The Pound increased slightly against the Euro to 1.1531.

Data to look out for today.

09:30: GBP Consumer Price Index

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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