Pound Creeps Higher as BoE Outlook Shifts
Weakness in the US Dollar helped to push the Pound Sterling higher and allowed it to stabilize though FX traders remain extremely cautious about the outlook for Sterling. Earlier this week, the GBP/USD had hit a 2-year trough but it has been able to recover some of those losses, even despite disappointing data. Analysts say that that may be because investors are no longer waiting for the Bank of England to get on board with the rest of the globe's major central banks; indeed, the Bank of England was compelled to alter its policy outlook to a more dovish one, and foregoing their hawkish posturing.
As reported at 11:40 am (GMT) in London, the GBP/USD was trading higher at $1.2552, a gain of 0.3887%; the pair moved off the session peak of $1.2558 while the low is a remote $1.2506. The EUR/GBP was trading lower at 0.8987 Pence, down 0.1934%; the pair has ranged from 0.89760 Pence to 0.90056 Pence in today's trading session.
Inflation Data in Focus
Inflation data is due out for several major economies today. Earlier today, the German Destatis reported that the Harmonized Index of Consumer Prices for June (annualized) had edged up to 1.5%, above the flat 1.3% that analysts had predicted. In France, the CPI was flat in June at 1.4%. Later today, the US Bureau of Labor Statistics will be releasing inflation data. Analysts are forecasting that annualized CPI will have fallen in June to 1.6% from 1.8%, while core CPI is likely to remain flat at 2%. The EUR/USD, the trading pair which would be most influenced by the data release, is currently trading at $1.1272, up 0.1671%.
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