Yesterday was a quiet day for sterling. There was a lack of significant data releases here and from elsewhere which left the markets in the doldrums.
Today is different as we have the release of the UK’s Consumer Price Index (CPI) for December which is forecast to fall to 0.7%, the first time it has dropped below the 1% level since 2002. This is the most important indicator of inflation in the UK and, when considered with the Bank of England (BoE)’s targeting of inflation at 2%, highlights how significantly the economic outlook has changed since June’s 1.9% reading. The major driver is the fall in energy and commodity costs plus downward pressure on food prices as the supermarkets battle it out.
Whatever the outcome I am sure it will generate movement in sterling exchange rates so if you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.