Today we have the UK CPI report, whilst the British economy has been showing encouraging signs of growth; there are still some concerns about an overheating housing market and rising mortgage debt.
Trading Event: CPI and 11:30am
- Inflation is a metric used by central banks for adjusting inflation rates; the timing of this decision will be dependent on measures such as CPI today.
- Each previous release has shown the consumer inflation has eased, falling to 1.6% for the year through March.
- There are some concerns over a dis-inflationary trend.
- Yet, housing prices are rising sharply and there had been a sharp rise in borrowing, which governor Carney has highlighted as a concern.
- Despite the low inflation, the gap between wage inflation and the rise in prices has narrowed, contributing to business stability.
- Today’s release is forecasted at 1.7% from a previous 1.6% level.
- Banc De Binary analysts predict the CPI announcement will be soft, indicating a potential downward position in the GBP/USD.