UK week ahead: CPI and retail sales - Danske Bank

Matías Salord FXStreet

Next week, economic reports from the United Kingdom include the inflation and retail sales. Analysts from Danske Bank, expect the CPI figures for October to show a small uptick, driven mainly by lingering effects of the weak GBP.

Key Quotes:

“In the UK, CPI figures for October are due to be released on Tuesday. Inflation remains at close to 3% on an annual basis, still driven mainly by the weak GBP. However, the positive contribution from the GBP is starting to fade gradually, although in our view it will take some time before it affects inflation significantly. We estimate CPI rose 0.3% m/m (3.2% y/y versus 3.0% in September).

“On Thursday, we get retail sales excluding fuels for October. Retail sales growth has slowed due to negative real wage growth and is one of the reasons GDP growth has slowed this year. That said, remember UK retail sales is not the best indicator of actual consumption growth.”

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD falls toward 1.1700 on broad USD recovery

EUR/USD turns south and declines toward 1.1700 on Wednesday. The US Dollar gathers recovery momentum and forces the pair to stay on the back foor, as traders look to USD short-covering ahead of US inflation report on Thursday. However, the downside could be capped by hawkish ECB expectations.

GBP/USD trades deep in red below 1.3350 after soft UK inflation data

GBP/USD stays under strong selling pressure midweek and trades below 1.3350. The UK annual headline and core CPI rose by 3.2% each, missing estimates of 3.5% and 3.4%, respectively, reaffirming dovish BoE expectations and smashing the Pound Sterling across the board ahead of Thurday's BoE policy announcements.

Gold clings to moderate daily gains above $4,300

Following Tuesday's volatile action, Gold regains its traction on Wednesday and trades in positive territory above $4,300. While the buildup in the USD recovery momentum caps XAU/USD's upside, the cautious market stance helps the pair hold its ground.