FOREX TradingCharts.com

Forex News: Pound Climbs After U.K. Consumer Inflation Hits 6-month

Pound Climbs After U.K. Consumer Inflation Hits 6-month High

02/19/2020 - 06:33:00 (RTTNews)

(RTTNews) - The pound advanced against its major trading partners in the European session on Wednesday, as U.K. consumer inflation accelerated to a six-month high in January, supporting hopes that the Bank of England would keep rate unchanged in near term.

Data from the Office for National Statistics showed that inflation improved to 1.8 percent in January from 1.3 percent in December. Economists had expected a 1.6 percent rise.

On a monthly basis, consumer prices fell 0.3 percent after remaining flat in the previous month. The rate was forecast to fall by 0.4 percent.

Another report from ONS showed that output price inflation accelerated to 1.1 percent in January from 0.9 percent in December.

Month-on-month, output inflation was 0.3 percent in January, compared to a flat reading in December.

Input prices rose to 2.1 percent in January from 0.9 percent in December.

On a monthly basis, input price inflation remained unchanged at 0.9 percent in January.

Sentiment was underpinned by a fall in the number of new coronavirus cases in China.

Markets also remain hopeful that China will cut its benchmark loan prime rate Thursday to offset the economic damage caused by the coronavirus outbreak.

The currency exhibited mixed trading in the Asian session. The currency advanced against the yen but held steady against the euro and the franc. Versus the dollar, it dropped.

Extending early rally, the pound spiked up to nearly a 4-week high of 143.51 against the yen. The GBP/JPY pair had ended yesterday's trading session at 142.77. Immediate resistance for the pound is possibly seen around the 145.00 level.

Data from the Ministry of Finance showed that Japan posted a merchandise trade deficit of 1,312.6 billion yen in January.

That beat estimates for a shortfall of 1,684.8 billion yen following the 154.6 billion yen deficit in December.

The pound was up against the franc at 1.2811, gaining 0.4 percent from a low of 1.2762 set at 4:15 am ET. Next key resistance for the pound is likely seen around the 1.30 level.

Following a brief fall to 1.2975 at 4:15 am ET, the pound bounced back against the greenback, touching 1.3023. On the upside, resistance is seen near the 1.32 level.

The pound rose against the euro, with the EUR/GBP pair reaching 0.8295. The pound is likely to face resistance around the 0.80 region, if it gains again.

Looking ahead, at 8:30 am ET, Canada CPI for January will be published.

At the same time, U.S. housing starts, building permits and producer price index, all for January, are due out.

The Federal Reserve will release minutes from its January 28-29 meeting at 2:00 pm ET.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT FOREX and ECONOMIC NEWS STORIES


Canadian Dollar Mixed After BoC Surprise Rate Cut (08 hr(s), 0 min(s),19 sec(s) ago)
(RTTNews) - The Canadian dollar showed mixed trading against its major counterparts in the Europea ...Full Story»

Dollar Slightly Down After U.S. Consumer Sentiment Index (08 hr(s), 51 min(s), 18 sec(s) ago)
(RTTNews) - The Michigan University's Consumer Sentiment report for March has been published a ...Full Story»

Dollar Mixed Ahead Of U.S. Consumer Sentiment Index (08 hr(s), 57 min(s), 19 sec(s) ago)
(RTTNews) - The Michigan University's Consumer Sentiment report for March will be published at ...Full Story»

Dollar Little Changed After U.S. Personal Income & Spending Data (10 hr(s), 18 min(s), 19 sec(s) ago)
(RTTNews) - The U.S. personal income and spending data for February has been released at 8:30 am E ...Full Story»

Dollar Steady Ahead Of U.S. Personal Income & Spending Data (10 hr(s), 27 min(s), 18 sec(s) ago)
(RTTNews) - The U.S. personal income and spending data for February will be released at 8:30 am ET ...Full Story»

Euro Drops Amid Recession Fears (10 hr(s), 45 min(s), 18 sec(s) ago)
(RTTNews) - The euro slipped against its major counterparts in the European session on Friday, as ...Full Story»

Australian Dollar Higher Amid Rising Risk Appetite (15 hr(s), 30 min(s), 19 sec(s) ago)
(RTTNews) - The Australian dollar strengthened against its major counterparts in the Asian session ...Full Story»

Indian Rupee Appreciates To 1-week High Versus U.S. Dollar After RBI Rate Cut (16 hr(s), 24 min(s), 19 sec(s) ago)
(RTTNews) - The Indian rupee drifted higher against the U.S. dollar in morning deals on Friday, af ...Full Story»

Search

FOREX NEWS

Canadian Dollar Mixed After BoC Surprise Rate Cut

03/27/2020 - 10:51 AM (RTTNews)
(RTTNews) - The Canadian dollar showed mixed trading against its major counterparts in the Europea ...Full Story>>

Dollar Slightly Down After U.S. Consumer Sentiment Index

03/27/2020 - 10:02 AM (RTTNews)
(RTTNews) - The Michigan University's Consumer Sentiment report for March has been published a ...Full Story>>

Dollar Mixed Ahead Of U.S. Consumer Sentiment Index

03/27/2020 - 09:55 AM (RTTNews)
(RTTNews) - The Michigan University's Consumer Sentiment report for March will be published at ...Full Story>>

Dollar Little Changed After U.S. Personal Income & Spending Data

03/27/2020 - 08:33 AM (RTTNews)
(RTTNews) - The U.S. personal income and spending data for February has been released at 8:30 am E ...Full Story>>

Dollar Steady Ahead Of U.S. Personal Income & Spending Data

03/27/2020 - 08:24 AM (RTTNews)
(RTTNews) - The U.S. personal income and spending data for February will be released at 8:30 am ET ...Full Story>>
Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.