The UK inflation came in at 5.4% growth year on year (fastest in 30 years) whilst analysts were expecting 5.2% growth year on year. This has caused the Pound to jump slightly against the Euro.
This should almost nail on a rate hike on February 3rd as the Bank of England should be pulling levers to cool inflation down. If there isn't a rate hike the Pound could lose heavily against the majors.
The Pound had a tough day yesterday against the other majors as it appears profits were taken by traders pushing the Pound rates down. It was only against the Euro that we saw a healthy jump back up to the top of the range around midday yesterday.
Todays focus will be on the Bank of England's Governor, Andrew Bailey, giving a speech in the early afternoon and a much watched interest rate decision from the Public Bank of China (PBoC) in the early hours of tomorrow.
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
UK: 14:15 BoE's Andrew Bailey Speech
CHN: Thursday 01:30 PBoC Interest Rate Decision