Sterling Wavers after UK CPI, Kiwi Leads
Action Insight Mid-Day Report 4-17-24 |
Sterling Wavers after UK CPI, Kiwi Leads |
Sterling is having a volatile trading day, initially gaining ground after UK CPI data which indicated slower pace of disinflation than anticipated. Despite this, the currency struggled to maintain its momentum as the data did not substantially alter the broader expectation that BoE) will delay interest rate cuts until at least late summer. The lack of significant decline in services inflation particularly underscored ongoing price pressure challenges, reinforcing the view that it is premature for a more optimistic stance on monetary easing. In the broader currency market, New Zealand Dollar is currently the strongest performer of the day, buoyed by supportive Q1 CPI readings that suggest sustained inflationary pressures, which may delay any rate cuts by RBNZ. Following closely behind, Australian Dollar ranked as the second strongest, with traders positioning ahead of the upcoming employment data expected to influence further movements. Dollar is the weakest one, as it began to retract some of its recent gains. Japanese Yen and Canadian Dollar also underperformed, while Euro and Swiss Franc held middle positions in the trading spectrum... |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.2397; (P) 1.2435; (R1) 1.2463; More... Intraday bias in GBP/USD remains neutral and outlook is unchanged. Consolidation from 1.2402 is extending, but upside of recovery should be limited by 1.2538 support turned resistance to bring another fall. On the downside, firm break of 1.2404 will resume the decline from 1.2892 to 100% projection of 1.2892 to 1.2538 from 1.2708 at 1.2354. Firm break there will target 161.8% projection at 1.2207 next. | |
GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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22:45 | NZD | CPI Q/Q Q1 | 0.60% | 0.60% | 0.50% | 22:45 | NZD | CPI Y/Y Q1 | 4.00% | 4.70% | 23:50 | JPY | Trade Balance (JPY) Mar | -0.70T | -0.28T | -0.45T | -0.57T | 01:00 | AUD | Westpac Leading Index M/M Mar | -0.10% | 0.10% | 06:00 | GBP | CPI M/M Mar | 0.60% | 0.60% | 06:00 | GBP | CPI Y/Y Mar | 3.20% | 3.10% | 3.40% | 06:00 | GBP | CPI Core Y/Y Mar | 4.20% | 4.10% | 4.50% | 06:00 | GBP | RPI M/M Mar | 0.50% | 0.80% | 06:00 | GBP | RPI Y/Y Mar | 4.30% | 4.20% | 4.50% | 06:00 | GBP | PPI Input M/M Mar | -0.10% | 0.00% | -0.40% | 0.30% | 06:00 | GBP | PPI Input Y/Y Mar | -2.50% | -2.70% | -2.20% | 06:00 | GBP | PPI Output M/M Mar | 0.20% | 0.20% | 0.30% | 06:00 | GBP | PPI Output Y/Y Mar | 0.60% | 0.40% | 06:00 | GBP | PPI Core Output M/M Mar | 0.30% | 0.20% | 0.10% | 06:00 | GBP | PPI Core Output Y/Y Mar | 0.10% | 0.20% | 0.30% | 0.20% | 09:00 | EUR | Eurozone CPI Y/Y Mar F | 2.40% | 2.40% | 2.40% | 09:00 | EUR | Eurozone CPI Core Y/Y Mar F | 2.90% | 2.90% | 2.90% | 14:30 | USD | Crude Oil Inventories | 1.6M | 5.8M | 18:00 | USD | Fed's Beige Book |
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