When the last UK Inflation Report was released three months ago, the Bank of England Governor did his best to convince markets that rates were going to remain low, but the reaction in interest rate and currency markets suggested otherwise. In the run up to today’s release, the question is to what extent markets have already priced in a relatively hawkish Inflation Report that prepares markets for the fact that rates are not going to remain low forever. Interest rate futures were rallying strongly in the run up to the last Inflation Report, pricing in lower UK rates. This time, they have been selling off, which has supported the gains on the currency and pushed cable to within a whisker of the 1.70 level. This makes the risk-reward this time around more towards a weaker currency, but that just based on the momentum going into the meeting. The bigger question is whether it is more down to the financial policy committee to act to cool the housing market, via the various measures available to them. This is a question that won’t be answered today, but is likely to remain a feature of the UK policy debate. Â The initial focus to the upside for cable is at 1.6903 ahead of 1.70. Downside support seen at 1.6819 ahead of 1.6763. Ahead of that is UK labour market data at 08:30 GMT, with US PPI data seen at 12:30 GMT. The main overnight focus has been with the continued strength of the Aussie in the wake of yesterday’s budget, the year high at 0.9461 not that far away. Â Further reading: USD/JPY: Trading the Philadelphia Fed Manufacturing Index Inflation-Hawk Buba Supportive of EU Stimulus FxPro - Forex Broker FxPro - Forex Broker Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss. View All Post By FxPro - Forex Broker Daily Look share Read Next EUR/USD May 14 – Euro Shrugs off Weak Inflation, Kenny Fisher 8 years When the last UK Inflation Report was released three months ago, the Bank of England Governor did his best to convince markets that rates were going to remain low, but the reaction in interest rate and currency markets suggested otherwise. In the run up to today's release, the question is to what extent markets have already priced in a relatively hawkish Inflation Report that prepares markets for the fact that rates are not going to remain low forever. Interest rate futures were rallying strongly in the run up to the last Inflation Report, pricing in lower UK rates. This time,… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
