Pound Can Outperform the Market

Pound Can Outperform the Market

What is happening?

Great Britain's office for national statistics will release CPI data on January 19, 09:00 GMT+2. This is considered the UK's most important inflation data because it's the central bank's inflation target. In addition, over the last several months, investors highlighted inflation as the key measure of economic recovery. Thus, this particular reading is one of the most anticipated January events in the British economy.

Pound against other currencies

Researchers at Barclays describe the British Pound's recent performance as "resilient" as they anticipate the currency to continue outperforming key peers over the coming weeks and months. The pound was the best performing G10 currency in the first week of 2022, helped by a positioning unwind and expectations for a February interest rate hike. The market now anticipates a 75% chance of a second rate hike coming from the Bank of England at the February policy meeting, odds of which have in turn been boosted by expectations for a more hawkish US Federal Reserve in 2022.

The last readings created a vast bullish movement in GBP/USD pair. However, shortly the pair returned to 1.320.

GBP.png

How to trade on Britain's CPI readings?

Higher-than-expected inflation boosts the chances for a rate hike. Thus, creating an uptrend movement in GBP against other currencies.

  • If the actual number is higher than expected – GBP will rise.
  • Otherwise – GBP may slide against USD and EUR.

Check the economic calendar

Instruments to trade: GBP/USD, GBP/CAD, EUR/GBP.

Similar

How to trade the JPY?
How to trade the JPY?

Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:

Is Inflation Defeated?
Is Inflation Defeated?

Now traders follow the economic events with new vision as inflation in the US seems like decreasing. Let’s see what releases will influence the market due to that factor.

Who Will Rule the US?
Who Will Rule the US?

The week will have the biggest event in the US political process over the last two years. How will the elections affect the Forex market? We covered the most important news of this week in this report.

Latest news

What Currency Will Overperform?
What Currency Will Overperform?

S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera