Market Comment - Inflation - 18th August 2021

Posted by Stuart PritchardAugust 18, 2021

Good morning,

So the UK published it's inflation numbers this morning. The expectation was for 2.2% and came in at 2%. The report looks to be a game of 2 halves with clothing, footwear and package holidays cheaper than 12 months ago, however fuel is higher for the same comparison.

So what does that mean for the Pound. Generally speaking a lower reading than expected means the Pound could weaken. However, with the sell off we have seen in the last week this effect might be less than expected.

The overall picture for the Pound remains the same at time of writing in that the UK seems to be on top of the Coronavirus unlocking and vaccination roll out. Eyes are on the Moderna vaccine for approval to be deployed to the teen population.

Outside of this there appears to be an element of "risk off" in the markets with what's going on in Afghanistan. This could cause a bit of strength in the Greenback, At the moment this appears to be the story dominating outcomes so we are keeping a close eye on developments.

As ever we look forward to keeping you in the loop and look out for our next update.

Our friendly currency experts are here to assist you and guide you through the markets, we offer a first-class service and even an online platform so you can monitor your transaction in real time.

Our business ethos is based on bank beating rates and fantastic customer service, click the link below for a no obligation quotation and see the savings for yourself.

Today's Economic Calendar

US: 13:30 Retail Sales

UK: 07:00 CPI and RPI Data (Inflation)

© 2022. RegencyFX Ltd. All rights reserved. *Third party fees may apply.

Payment services for RegencyFX Ltd are provided by The Currency Cloud Limited. Registered in England No. 06323311. Registered Office: The Steward Building 1st Floor, 12 Steward Street London E1 6FQ.

The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199). In the US Currency Cloud operates in partnership with CFSB. CFSB fully owns the bank program and services are provided by The Currency Cloud Inc.

Payment services for Regency FX Ltd are provided by Sciopay Ltd. Sciopay Ltd is a company incorporated in England & Wales. Registration No: 12352935. Sciopay Ltd is licensed and regulated by HMRC as a Money Service Business (MSB).

License No: XCML00000151326. Sciopay Ltd is authorised by the Financial Conduct Authority as an Authorised Payment Institution. Firm Reference Number: 927951

Currency Pairs, Approved Jurisdictions and Non-Permitted Activity

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram