UK Inflation Data Tempers Sterling, But Impact Limited
| Action Insight Mid-Day Report 2-14-24 |
UK Inflation Data Tempers Sterling, But Impact Limited |
Sterling is taking a modest step back today, responding to UK's latest inflation report that came in below market expectations. Despite this, the actual figures for both headline and core CPI merely held their ground compared to the previous month's readings, signaling continued pause in disinflationary progress. Additionally, the report highlighted a slight uptick in services inflation. Consequently, the data underscores a lingering necessity for the BoE to adopt a wait-and-see approach, and data more economic data before acting on interest rate. August still appears more feasible than an earlier first cut in May. Consequently, Sterling's reaction was measured, reflecting a cautious recalibration of expectations rather than a drastic reassessment of the BoE's monetary policy path... |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.2549; (P) 1.2617; (R1) 1.2661; More... GBP/USD dips notably today but stays above 1.2517 support. Intraday bias remains neutral for the now. On the upside, break of 1.2691 resistance will indicate that correction from 1.2826 has completed. Intraday bias will be back on the upside for retesting 1.2826. Nevertheless, decisive break of 1.2499 will argue that whole rise from 1.2036 has completed and turn near term outlook bearish. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 07:00 | GBP | CPI M/M Jan | -0.60% | -0.30% | 0.40% | | 07:00 | GBP | CPI Y/Y Jan | 4.00% | 4.10% | 4.00% | | 07:00 | GBP | Core CPI Y/Y Jan | 5.10% | 5.20% | 5.10% | | 07:00 | GBP | RPI M/M Jan | -0.30% | -0.10% | 0.50% | | 07:00 | GBP | RPI Y/Y Jan | 4.90% | 5.20% | 5.20% | | 07:00 | GBP | PPI Input M/M Jan | -0.80% | 0.00% | -1.20% | -0.40% | | 07:00 | GBP | PPI Input Y/Y Jan | -3.30% | -3.00% | -2.80% | -2.10% | | 07:00 | GBP | PPI Output M/M Jan | -0.20% | -0.20% | -0.60% | -0.50% | | 07:00 | GBP | PPI Output Y/Y Jan | -0.60% | -0.50% | 0.10% | | 07:00 | GBP | PPI Core Output M/M Jan | 0.20% | 0.00% | -0.10% | | 07:00 | GBP | PPI Core Output Y/Y Jan | -0.40% | 0.10% | 0.00% | | 10:00 | EUR | Eurozone GDP Q/Q Q4 P | 0.00% | 0.00% | 0.00% | | 10:00 | EUR | Eurozone Employment Change Q/Q Q4 P | 0.30% | 0.20% | 0.20% | | 10:00 | EUR | Eurozone Industrial Production M/M Dec | 2.60% | -0.30% | -0.30% | 0.40% | | 15:30 | USD | Crude Oil Inventories | 3.3M | 5.5M |
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