So to business. UK inflation is nothing other than rampant. Analysts had predicted growth of 5.4% today but the actual number was 5.5%. That's almost triple the Bank of England's target of 2%. This almost certainly nails on a rate hike by the Bank of England on Thursday 17th March.
However this information has largely been baked into the markets by now as the actual figure versus predicted was only out by 0.1%. It would have had to have been a larger variance to have any real affect.
Whilst this huge inflation number might be bad for consumers and the cost of living it's seen as a positive for the Pound versus other currencies so expect the Pound to show strength for now.
The other major news story dominating the markets is the situation in Ukraine. Will he or won't he? Every day seems to bring a handful of mixed reports....and the markets are reacting accordingly....they are barely flinching. Only when a decisive move happens will they react. However that reaction will be very swift so a risk off approach right now seems the safe bet.
If you have any impending currency exchange requirements it could be a good time to get them booked to take risk off the table. However which way the markets move when a decisive move is made in Ukraine is the difficult thing to judge.
As ever we look forward to keeping you in the loop and look out for our next update.
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Today’s Economic Calendar
US: 13:30 Retail Sales
CAN: 13:30 Inflation numbers
US: 19:00 Federal Open Market Committee (FOMC) Meeting Minutes
AUS: Thursday 00:30 Employment data