The market sentiment is mixed, but there are still interesting movements on the market.
British CPI is in the arena
Consumer Price Index (CPI) is the UK’s most important inflation indicator because it’s used as the central bank’s inflation target. The pound is depreciating because of Brexit deal’s uncertainties. Although the UK hasn’t left the European Union yet, the British economy is already under great pressure. As the economy weakens, the pound goes down. To recover, the pound needs improvement in economic indicators.
Annual inflation in the UK declined to 2.4% in April 2018 from 2.5% in March, and below market expectations of 2.5%. It is the lowest rate since March 2017. Although the Bank of England’s inflation target is at 2%, a decline of CPI makes traders think that the central bank won’t raise interest rates this year. This is negative for the pound.
The UK CPI figures will be released at 11:30 MT time on June 13.
• If the data is greater than the forecast, the British pound will appreciate.
• If the data is weaker than the forecast, the British pound will go down.
Stock significantly surged: S&P 500 and Nasdaq reached 6-week highs. The market sentiment may deteriorate today as Johnson & Johnson’s Covid-19 vaccine trails have been stopped because of the unexplained illness.
Riskier assets and gold ended last week with huge gains due to the weak US dollar’s performance. Let’s discuss what will drive the markets today.
Canada’s retail sales will be out on October 21 at 15:30 MT time. Get ready with us for this event!
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.