FOREX TradingCharts.com

Forex News: Pound Higher As U.K. Inflation Accelerates To Near

Pound Higher As U.K. Inflation Accelerates To Near 3-year High

07/14/2021 - 04:57:00 (RTTNews)

(RTTNews) - The pound strengthened against its major trading partners in the European session on Wednesday, as the nation's consumer inflation accelerated more-than-expected in June, exceeding the Bank of England's inflation target for the second consecutive month.

Data from the Office for National Statistics showed that inflation rose to 2.5 percent in June from 2.1 percent in May. The rate was forecast to climb to 2.2 percent.

The rate was the highest since August 2018.

The annual growth was largely driven by prices of food, second-hand cars and clothing and footwear.

On a monthly basis, consumer prices gained 0.5 percent, following a 0.6 percent rise in May. The expected rate was 0.2 percent.

Core inflation, that excludes energy, food, alcoholic beverages and tobacco, advanced to 2.3 percent in June from 2 percent in May.

Another report from the ONS showed that output price inflation eased marginally to 4.3 percent in June from 4.4 percent in May, while economists had forecast the rate to climb to 4.8 percent.

On month, output price inflation halved to 0.4 percent from 0.8 percent. The expected rate was 0.6 percent.

At the same time, input price inflation slowed to 9.1 percent from 10.4 percent a month ago. Inflation was forecast to advance to 10.8 percent.

Month-on-month, input prices fell 0.1 percent, in contrast to a 1.2 percent rise in May. Economists had forecast prices to rise again by 1.2 percent.

Investors await Powell's testimony on the semi-annual monetary policy report before the House Financial Services Committee in Washington DC later in the day.

Powell's speech could offer more insights about the bank's plans to scale back asset purchase program amid growing price pressures.

The pound drifted higher to more than a 3-month high of 0.8512 against the euro from yesterday's close of 0.8523. The pound is likely to face resistance around the 0.84 region.

The pound rose to a 2-day high of 1.2718 against the franc, from a 5-day low of 1.2662 seen at 5:15 pm ET. The pound may test resistance around the 1.29 level, if it rises again.

The pound reached as high as 1.3862 against the greenback, up from Tuesday's closing value of 1.3801. The currency is seen finding resistance around the 1.41 level.

The pound edged up to 153.14 against the yen, from yesterday's closing quote of 152.72. Next key resistance for the pound is seen near the 155 level.

Looking ahead, Eurozone industrial production for May is due in the European session.

Canada manufacturing sales for May, U.S. producer prices for June and Fed Beige book report will be released in the New York session.

The Bank of Canada will announce its interest rate decision at 10:00 am ET. The BoC is widely expected to keep its policy rate steady at 0.25 percent.

Federal Reserve Chair Jerome Powell is due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington DC at 12 pm ET.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2021 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT FOREX and ECONOMIC NEWS STORIES


Dollar Little Changed After U.S. Consumer Sentiment Index (05 hr(s), 59 min(s), 56 sec(s) ago)
(RTTNews) - The University of Michigan's final consumer sentiment index for July has been rele ...Full Story»

Dollar Little Changed After U.S. Personal Income And Spending Data (07 hr(s), 29 min(s), 56 sec(s) ago)
(RTTNews) - The U.S. personal income and spending data for June has been released at 8:30 am ET Fr ...Full Story»

Dollar Rebounds Ahead Of U.S. Personal Income And Spending Data (07 hr(s), 38 min(s), 56 sec(s) ago)
(RTTNews) - The U.S. personal income and spending data for June is due at 8:30 am ET Friday. Ahead ...Full Story»

Euro Appreciates As Eurozone Economic Growth Beats Forecasts (07 hr(s), 50 min(s), 56 sec(s) ago)
(RTTNews) - The euro climbed against its most major counterparts in the European session on Friday ...Full Story»

Euro Little Changed After Eurozone GDP Data (10 hr(s), 56 min(s), 56 sec(s) ago)
(RTTNews) - At 5.00 am ET Friday, Eurostat has published euro area preliminary flash GDP report, f ...Full Story»

Euro Mixed Before Eurozone GDP Data (11 hr(s), 02 min(s), 56 sec(s) ago)
(RTTNews) - At 5.00 am ET Friday, Eurostat is slated to issue euro area preliminary flash GDP repo ...Full Story»

Australian Dollar Falls In Cautious Trade (11 hr(s), 11 min(s), 55 sec(s) ago)
(RTTNews) - The Australian dollar declined against its major counterparts in the Asian session on ...Full Story»

Dollar Falls Following U.S. GDP Data (07 hr(s), 26 min(s), 55 sec(s) ago)
(RTTNews) - The U.S. GDP data for the second quarter has been released at 8:30 am ET Thursday. The ...Full Story»

Search

FOREX NEWS

Dollar Little Changed After U.S. Consumer Sentiment Index

07/30/2021 - 10:04 AM (RTTNews)
(RTTNews) - The University of Michigan's final consumer sentiment index for July has been rele ...Full Story>>

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

07/30/2021 - 08:34 AM (RTTNews)
(RTTNews) - The U.S. personal income and spending data for June has been released at 8:30 am ET Fr ...Full Story>>

Dollar Rebounds Ahead Of U.S. Personal Income And Spending Data

07/30/2021 - 08:26 AM (RTTNews)
(RTTNews) - The U.S. personal income and spending data for June is due at 8:30 am ET Friday. Ahead ...Full Story>>

Euro Appreciates As Eurozone Economic Growth Beats Forecasts

07/30/2021 - 08:12 AM (RTTNews)
(RTTNews) - The euro climbed against its most major counterparts in the European session on Friday ...Full Story>>

Euro Little Changed After Eurozone GDP Data

07/30/2021 - 05:06 AM (RTTNews)
(RTTNews) - At 5.00 am ET Friday, Eurostat has published euro area preliminary flash GDP report, f ...Full Story>>

Do not sell my personal information

Copyright © 2021. 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.