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Forex Today: British Inflation Up At 11.1%

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

Inflation is in the spotlight today as British CPI overshoots and markets await the release of new Canadian CPI numbers.

  

   

  1. UK CPI (inflation) data has just come in higher than expected at 11.1% compared to the anticipated 10.7%. This is the highest annualized rate of inflation seen in the UK since October 1981. Markets are awaiting a release of Canadian CPI data later today.
  2. Towards the end of yesterday’s New York session, a missile struck an area of Poland close to the Ukrainian border killing two civilians, with initial supports suggesting it was a Russian missile which had gone off-target. However, it now seems most likely, according to President Biden and NATO sources, that it was a Ukrainian air defence missile which missed its target.
  3. US PPI data showed a lower-than-expected month on month increase of only 0.2%, compared to the 0.4% which had been expected. This is in line with the lower-than-expected US CPI data which was released last week, and supports a less hawkish Fed scenario and therefore a weaker US Dollar.
  4. In the Forex market, the US Dollar is continuing to sell off. Over the short-term, the Euro is the strongest major currency, and the Japanese Yen the weakest.
  5. UK unemployment data released yesterday showed a slightly smaller rise in unemployment than had been expected.
  6. Australian wage price index data released yesterday came in almost exactly as had been widely expected.
  7. Today will see releases of US retail sales data and the Goverbor of the Bank of England testifying before the British Parliament.
  8. Daily new global coronavirus cases dropped last week, continuing a downwards trend which began last July.
  9. It is estimated that 68.2% of the world’s population has received at least one dose of a coronavirus vaccination.  
  10. Total confirmed new coronavirus cases worldwide stand at over 641 million with an average case fatality rate of 1.03%.  
  11. The rate of new coronavirus infections appears to now be significantly increasing only in Japan and China.  
Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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