Financial markets will be keeping a close eye on inflation numbers today with prints scheduled from the UK, eurozone, and Canada. Most attention will be paid to the UK report following yesterday’s super strong employment numbers, which produced a significant fight back from the pound. Sterling closed the day just below the $1.25 level versus the US dollar and in the €1.18 handle against the euro after rallying above €1.19 earlier in the day.
Today’s UK inflation report is set to see the consumer price index jump from 7% in March to 9.1% in April. This large increase will be fuelled by energy prices which rose sharply in April. It’s unclear how the pound will react to this morning’s data, however, there’s likely to be a lot of volatility as traders and dealers react to the new information.
Written by Viv Savani. 6:39am, May 18th 2022
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