Good Morning ,
The annual UK inflation more than doubled in April, consumer prices are rapidly rising at their quickest rate since March 2020. There was a jump from 0.7% in March to 1.5% in April, meaning that they are rising vigorously; furthermore, a rise in the price of oil has led to a rise in petrol prices.
The UK economy is now on track to grow at its fastest pace since the Second World War and overtaking the US. The UK economy is really starting to pick back up now that everything is back open and running.
In term of currency, the dollar has remained in a similar position to what it has been the last couple days; the euro on the other hand was holding a slightly stronger tone.
Sterling is still looking rather strong compared to its main competitors.
Regarding yesterday’s data releases, Eurozone GDP for Q1 has not changed. US housing starts for April. These data releases did not have a significant impact on the currencies themselves and have barely changed them or not changed them at all.
On the topic of the major currency pairs, the dollar is still under strains of pressure, the euro has picked up slightly and has made some gains over the last 24 hours. The EUR/USD pair has gone up slightly, which is the first time it has gone up since January. EUR/GBP has also gained slightly. GBP/USD is still hanging around a similar mark from yesterday.
With the day ahead in mind, headline inflation has come out slightly above the predictions going from 0.7% to 1.5%, the forecast was 1.4%. The other main highlight to keep an eye out for is the Fed meeting minutes. To sum up, the major FX pairs are likely to trade within narrow ranged throughout the day today.
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Todays Economic Calendar
Wed 19th UK: 07:00 CPI (April)
UK: 07:00 PPI Output Prices (April)
- Input Prices
EU-19: 10:00 Final HICP (April)
- Ex-Food & Energy
US: 19:00 FOMC Meeting Minutes (27-28th April 2021)