The British Pound is looking to UK CPI data to guide BOE rate hike expectations. The Australian Dollar rallied alongside Chinese stock markets overnight.

Talking Points:

  • British Pound May Fall as Soft Inflation Data Weighs on BOE Rate Hike Bets

  • Aussie, NZ Dollars Outperform on Ebbing HK-Linked China Instability Fears

  • Place Economic Releases Directly on Your Charts with the DailyFX News App

September’s UK CPI figures headline the economic calendar in European trading hours. The headline year-on-year inflation rate is expected to slow to 1.4 percent, marking a five-year low. UK price-growth readings have tended to underperform relative to consensus forecasts over recent months (according to data from Citigroup), hinting the realized result may prove softer still. Such an outcome is likely to weigh on the British Pound amid ebbing BOE rate hike bets.

With that in mind, leading survey data offers a mixed perspective. While price pressures in the manufacturing sector looked anemic in September, implied service-sector inflation registered at a four-month high over the same period. Services account for close to 80 percent of the overall economy, so a pickup in price growth there may carry significant implications for nationwide figures and deliver an upside surprise on the CPI print. Needless to say, Sterling is likely to find support in this scenario.

The Australian and New Zealand Dollars outperformed in overnight trade, rising as much as 0.6 and 0.3 percent respectively against their leading counterparts. The two currencies tracked gains in China’s Shanghai Composite and Hong Kong’s Hang Seng Index equity benchmarks. The moves came amid reports that police were clearing protesters’ barricades in Hong Kong, pointing to ebbing instability risk in Australia and New Zealand’s largest export market.

FXCM, L.L.C.® assumes no responsibility for errors, inaccuracies or omissions in these materials. FXCM, L.L.C.® does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. FXCM, L.L.C.® shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. Opinions and estimates constitute our judgment and are subject to change without notice. Past performance is not indicative of future results.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE

EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE

EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action. 

EUR/USD News

GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday

GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday

GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance. 

GBP/USD News

Gold reaches to all-time highs near $2,230, US PCE eyed

Gold reaches to all-time highs near $2,230, US PCE eyed

Gold price appreciates to all-time highs near $2,230 per troy ounce, attempting to continue its winning streak for the fifth successive session on Friday. However, trading volumes are light as market participants are likely observing Good Friday.

Gold News

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.

Read more

Key events in developed markets next week

Key events in developed markets next week

Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.

Read more

Majors

Cryptocurrencies

Signatures