GBP: CPI data is mildly sterling supportive – ING

FXStreet Insights Team FXStreet

This morning's release of October CPI data could be read as mildly hawkish for Bank of England policy, ING's FX analyst Chris Turner notes.

GBP to remain fragile heading into the Budget

"He highlights: 'Headline inflation was a tad above consensus at 3.6% on account of a sharper rise in food prices than we and others had been pencilling in. Last month, food inflation fell back from 5.1% to 4.5%, which did look a little too good to be true. That has bounced back up to 4.9% and remember this is something the BoE hawks are fairly obsessed with at the moment, out of concern it will fuel inflation expectations'."

"Overall, however, he doubts today's data will be a game-changer for key BoE swing-voter Andrew Bailey, and still favours a 25bp December rate cut. The proximity of next week's Budget is probably another reason why sterling could not hold its initial gains on today's release. We expect sterling to remain fragile heading into the Budget."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD: US Dollar recovers ahead of ECB, more Trump in the docket

The EUR/USD pair soared in the last week of January, hitting a multi-year high of 1.2082 before finally retreating and trimming most of its weekly gains to settle around the 1.1900 level. The US Dollar gapped lower on Monday, on headlines suggesting the United States intended to intervene in the Japanese Yen.

GBP/USD eyes more upside, with Golden Cross in play

Pound Sterling hits four-year highs above 1.3850 on relentless US Dollar selling. GBP/USD appears bullish, positioning for the BoE verdict and US Nonfarm Payrolls. Technically, a Golden Cross on the daily chart suggests more upside for GBP/USD.

Gold falls below $4,800 as Warsh pick eases Fed independence concerns

Gold price tumbles to around $4,780 during the early Asian session on Monday. The precious metal extends the decline after reaching historic highs last week amid signs of political stability in the United States. Traders will take more cues from the US ISM Manufacturing Purchasing Managers Index report later on Monday.

Week ahead: Could strong US data shift focus from Trump’s rhetoric?

Significant market moves keep investors on their toes. Trump has been the primary source of volatility, mainly when targeting the Fed. Pivotal US data releases next week as markets adjust to potential Warsh Fed nomination. RBA, BoE and ECB meet next week; decent chances of surprises across the board. Dollar/Yen prepares for February 8 elections; gold experiences its first substantial correction.

Global central banks hold steady as EMs signal easing ahead

Central banks across both G10 and emerging markets met this week, with most opting to keep policy rates unchanged. Canada, Sweden, Brazil and Chile all held rates steady. Beyond central bank decisions, the Eurozone's solid Q4 GDP growth bolstered the case for the ECB to keep policy rates unchanged next week.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple deepen sell-off as bears take control of momentum

Bitcoin, Ethereum, and Ripple continued their corrections on Friday, posting weekly losses of nearly 6%, 3%, and 5%, respectively. BTC is nearing the November lows at $80,000, while ETH slips below $2,800 amid increasing downside pressure.