Foreign Exchange Daily Market Update 20/08/18

Mon, August 20, 2018

Rate of inflation accelerates.

The rate of inflation in the U.K. increased for the first time in eight months in July, boosted by the cost of fuel, travel tickets, computer games and food.

Consumer-price growth for the year increased to 2.5% from 2.4% in June.

The BOE predicted that inflation would rise to 2.6% in July before falling back down as the effect of sterling’s post-Brexit decline fades.

BOE raised interest rates this month to harness price pressure in the labour market and suggested further hikes will be needed to return inflation to target, providing Britain avoids a chaotic Brexit.

An upward rise on inflation was offset by some financial services and clothing and footwear prices, which fell 3.7% on the month as struggling retailers extended summer discounts.

Core inflation, which excludes food, energy, tobacco and alcoholic drinks, stayed at 1.9%.

The Pound was trading at 1.275 this morning. Sterling traded at 1.117 against the Euro.

Data to look out today.   

Not much data due out today

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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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