Currency Note Sterling

Will todays inflation data impact sterling?

By Ricky Bean October 15th, 2013

Sterling had a fairly positive day yesterday, thanks to high expectations over the weeks coming data. While yesterday held no releases of its own, it was investors beliefs that tomorrows unemployment data will match that of the lowest in four years that helped strengthen sterling, seeing a rise from near four week low against the US dollar. Should this figure come out as predicted, it will add to the indicators of the UK economy’s growth; furthermore, it is especially important given the close links between the unemployment levels and the forward guidance laid down by the Bank of England. Before that, however, comes todays data, with the most influential being the yearly consumer price index (CPI). Alongside this, there is also a raft of smaller pieces of inflation related data that could cause some movement for sterling. These include the monthly purchasing price index and the yearly retail price index. Aside from data, good signs for sterling and the UK came from the bank Societe Generale who said that investors should buy the pound as the economy recovers. Call your trader now for the latest rates on sterling, as activity may pick up.