A Report on Inflation in the UK Supported the Pound

During yesterday's trading, the pound strengthened significantly against the US dollar. The growth of the GBP/USD quotations exceeded 150 points. The currency has reached the round level of 1.3300. The National Statistical Office of Great Britain reported that in August consumer prices (in annual terms) increased by 2.9%. Market expectations were at 2.8%. Inflation in the UK has reached its high over the last 5 years. Some experts believe that a significant increase in consumer prices could lead to a decline in living standards in Britain.

At the same time, the US dollar continued to grow relative to other major currencies. Concerns about the aftermath of Hurricane Irma and tension on the Korean peninsula significantly decreased. The US currency was also supported by an increase in the 10-year US government bonds yield by 8 basis points.

The "black gold" prices are consolidating. At the moment, futures for the WTI crude oil are being traded in the range of $48.00-48.40 per barrel.

Market Indicators

Yesterday, the major US stock indices closed in the positive zone: #SPY (0.34%), #DIA (0.30%), #QQQ (0.24%).

At the moment, the 10-year US government bonds yield is at the level of 2.16-2.17%.

The dollar index (#DX) closed the trading session with a slight increase (+0.04%).

• - A report on the labor market in the UK at 11:30 (GMT+3:00);
• - The volume of industrial production in the Eurozone at 12:00 (GMT+3:00);
• - The producer price index in the US at 15:30 (GMT+3:00);
• - Statistics on crude oil inventories in the US at 17:00 (GMT+3:00).

by JustMarkets, 2017.09.13

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.