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Foreign Exchange Daily Market Update 19/09/18

Wed, September 19, 2018

Inflation in the U.K. unexpectedly rose.

Inflation in U.K. unexpectedly rose to a six-month high in August, boosted by the cost of theatre shows, computer games, transport fares and clothing.

Annual consumer-price growth increased to 2.7% from 2.5 % in July it was expected to come in at 2.4 %.

The spike came mainly from the recreation and culture sector, where prices surged up by 3.6%, the most since 2010. This was balanced out from furniture prices, auto fuels and mobile-phone charges.

The BOE raised interest rates last month to reduce emerging price pressures, some economists were expecting inflation to slow to the 2% target by year end, earlier than August that was precited. Sterling spiked 0.5% to $1.3212 after the data.

We do not expect to see any further rate hike before the UK leaves the EU in March, the next hike is hesitatingly priced in for May. Unless the UK leaves without a deal.

Core inflation rose 2.1% in August, which excludes volatile food, energy, tobacco and alcoholic drinks.

The increase is bad for workers, whose wages remain the same and are just barely outstripping the rate of inflation.

House price growth slowed to 3.1% in July. The worst-performing region was London, where prices fell 0.7%, the biggest drop since September 2009.

Sterling fell to 1.3186 after touching 1.3212 against the dollar, the pound has strengthened to 1.127 after touching 1.1282 against the euro.   


Data to look out today.   

14:00 EUR ECB’s Draghi speaks in Berlin.  


  • Annual consumer-price growth rises to 2.7% in August





KBRFX was mentioned in the Essex Chronicle for the top 100 companies by turnover in Essex

Data Releases

Day Time Currency Event
THURS 08:30 GBP GBP Retail Sales Ex Auto Fuel (MoM)
THURS 08:30 GBP GBP Retail Sales Ex Auto Fuel (YoY)
THURS 08:30 GBP GBP Retail Sales Inc Auto Fuel (MoM)
THURS 08:30 GBP GBP Retail Sales Inc Auto Fuel (YoY)
THURS 12:30 USD USD Philadelphia Fed Business Outlook
THURS 12:30 USD USD Initial Jobless Claims
THURS 12:30 USD USD Continuing Claims
THURS 13:00 EUR EUR EU Informal Meeting of Heads of State Summit Press Conference
THURS 14:00 USD USD Leading Index
THURS 14:00 EUR EUR Euro-Zone Consumer Confidence
THURS 14:00 USD USD Existing Home Sales
THURS 14:00 USD USD Existing Home Sales (MoM)
THURS 14:30 USD USD EIA Working Natural Gas Implied Flow
THURS 14:30 USD USD EIA Natural Gas Storage Change
THURS 16:00 USD USD Household Change in Net Worth
THURS 17:00 USD USD U.S. to Sell 10-Year TIPS Reopening

Foreign Exchange Rates

GBP / USD 1.31790
GBP / EUR 1.12722
EUR / USD 1.16855
GBP / AUD 1.81697
GBP / CAD 1.70491
GBP / CHF 1.27625
GBP / CZK 28.6465
GBP / DKK 8.40802
GBP / HKD 10.33530
GBP / INR 95.387
GBP / JPY 148.133
GBP / MUR 44.72
GBP / NOK 10.74862
GBP / NZD 1.99359
GBP / PLN 4.83993
GBP / SEK 11.69970
GBP / SGD 1.80587
GBP / THB 42.7479
GBP / TRY 8.2975
GBP / ZAR 19.31725

*These are indicative rates only, based on interbank prices at the time of writing. For exact rates please contact our dealing team

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