The ONS has reported that UK inflation is running well ahead of analyst expectations which could well put pressure on the Bank of England to look at raising interest rates over coming months.
The British Pound faces up to the release of all-important inflation data on Tuesday February 14.
UK prices are growing at 1.6% on an annualised basis according to latest data from the ONS.
The UK’s November’s inflation print came in stronger than expected, with the annual CPI figure coming in at 1.2%, 0.1% higher than the consensus.
The GBP/EUR exchange rate looks remains capped below 1.20 but a number of key economic releases due out this week could well aid the exchange rate in shattering the ceiling.
Recent statistics from Financial Recruitment Specialist Morgan McKinley has shown November was the first month since Brexit to register a year-on-year rise in vacancies.
Pound Sterling trades mixed at the start of the new week with the currency’s recent outperformance starting to fade.
Pound Sterling could find guidance from the outcome of UK inflation data due on Tuesday.
For Pound Sterling the release of inflation data on Tuesday the 13th of September is key.
Pound Sterling lost ground against both the Euro and Dollar in the week 5-9 September, snapping a run of three weeks of positive performances against both currencies.
UK inflation is on the rise according to the latest data from the Office for National Statistics, and GBP has risen obligingly.
Pound Sterling looks to be determined to stay above its 2016 lows, but the resilience will be tested over coming days when inflation and employment data are released.
The UK economy is now contracting and is expected to do so into 2017 while inflation is forecast to pick up towards 2%.
New analysis on the outlook for the UK economy following the UK’s decision to exit the European Union shows inflation is about to pick up dramatically.
Inflation holds steady for April as price falls in food offset rises in transport.
Pound sterling enjoyed a strong recovery through April but gains have since stalled, and under-par data releases have certainly played their part.
The Bank of England will surely have to take note of the fact UK prices are rising at a rate that is subduing economic growth.
The British pound’s outlook rests with two factors, in our view: The EU referendum in June and UK inflation data.
All eyes will be on the Consumer Price Index (CPI) release on Tuesday as markets try to gauge whether UK inflation is headed in a direction that could invite scrutiny at the Bank of England.
GBP has come under fire at the start of the week on political developments but eyes are already focussed on the all-important inflation data out on Tuesday.
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