14 Jan 2014
EUR/GBP remains bearish ahead of UK inflation numbers
FXstreet.com (London) - EUR/GBP remains bearish ahead of UK inflation numbers.
The euro held firm following German, French and Italian CPI data, with the biggest focus being on GBP leg of the pair and Bank of England governor Mark Carney’s forward guidance policies.
Inflation upside potential
Consensus expectations are for today’s soon-t-be-released UK consumer price index inflation numbers to print at 2.1 percent year-on-year, but the biggest risk lies to the upside, with rising utility prices filtering through to the CPI reading.
Last week’s BoE rate hike came without an accompanying statement, and chatter continues to rise speculating that Mark Carney will move to lower the threshold for a rate hike from 7.0 percent to 6.5 percent unemployment.
The rumours of an extended dovish stance have weighed on the pound, putting it among the worst performing G10 currencies.
EUR/GBP is currently trading at GBP0.8323 – down 0.21 percent.
The euro held firm following German, French and Italian CPI data, with the biggest focus being on GBP leg of the pair and Bank of England governor Mark Carney’s forward guidance policies.
Inflation upside potential
Consensus expectations are for today’s soon-t-be-released UK consumer price index inflation numbers to print at 2.1 percent year-on-year, but the biggest risk lies to the upside, with rising utility prices filtering through to the CPI reading.
Last week’s BoE rate hike came without an accompanying statement, and chatter continues to rise speculating that Mark Carney will move to lower the threshold for a rate hike from 7.0 percent to 6.5 percent unemployment.
The rumours of an extended dovish stance have weighed on the pound, putting it among the worst performing G10 currencies.
EUR/GBP is currently trading at GBP0.8323 – down 0.21 percent.