12 Feb 2015
GBP a sell on recovery in today’s QIR – AceTrader
FXStreet (Barcelona) - The AceTrader Team comments on today’s inflation report, noting that the impact of lower oil and low inflation should be supportive for UK, unlike other economies, and further recommends selling GBP on any recovery into today’s release.
Key Quotes
“Although yesterday's decline is expected to keep cable under pressure, traders are keeping their powder dry ahead of release of the key BoE quarterly Inflation Report n the press conference by Governor Mark Carney.”
“Until then, selling the pound on recovery is favoured.”
“Offers are tipped at 1.5250/60 n more at 1.5275/80 with stops reported abv 1.5300.”
“Bids are noted at 1.5220-00 with stops below 1.5190.”
“The main event of the week is the release of BoE quarterly Inflation Report today n the press conference by Governor Mark Carney.”
“Reuters reported Carney will probably say on Thur that U.K. inflation will soon go negative, but the scale of its predicted bounce back might make investors rethink how long interest rates will stay at a record low.”
“A halving in global oil prices and last year's strengthening of the pound have pushed down inflation to its lowest level in nearly 15 years at 0.5%, way below the Bank's 2% target.”
“The shortfall is so big that Carney will have to explain it to Chancellor George Osborne. His open letter is due to be published at 10:30 GMT today, alongside the Bank's quarterly Inflation Report.”
“But neither Carney nor Osborne is likely to be too worried. Unlike in the euro zone, where falling prices have raised fears of damaging, Japan-style deflation, Britain's ultra-low price growth is expected to give a boost to the economy which is growing solidly.”
Key Quotes
“Although yesterday's decline is expected to keep cable under pressure, traders are keeping their powder dry ahead of release of the key BoE quarterly Inflation Report n the press conference by Governor Mark Carney.”
“Until then, selling the pound on recovery is favoured.”
“Offers are tipped at 1.5250/60 n more at 1.5275/80 with stops reported abv 1.5300.”
“Bids are noted at 1.5220-00 with stops below 1.5190.”
“The main event of the week is the release of BoE quarterly Inflation Report today n the press conference by Governor Mark Carney.”
“Reuters reported Carney will probably say on Thur that U.K. inflation will soon go negative, but the scale of its predicted bounce back might make investors rethink how long interest rates will stay at a record low.”
“A halving in global oil prices and last year's strengthening of the pound have pushed down inflation to its lowest level in nearly 15 years at 0.5%, way below the Bank's 2% target.”
“The shortfall is so big that Carney will have to explain it to Chancellor George Osborne. His open letter is due to be published at 10:30 GMT today, alongside the Bank's quarterly Inflation Report.”
“But neither Carney nor Osborne is likely to be too worried. Unlike in the euro zone, where falling prices have raised fears of damaging, Japan-style deflation, Britain's ultra-low price growth is expected to give a boost to the economy which is growing solidly.”