Sterling was certainly pleased with the UK’s latest inflation reading – enough for the currency to hit a fresh one year peak against the dollar.
August’s figure came in at a better than forecast 2.9%, matching May’s 2017 high having lingered at 2.6% across June and July. The core CPI reading, meanwhile, actually hit a 6 year peak of 2.7%, further explaining why the pound was quite so excited following the release.
The hawkish potential of this data lit a fire underneath the currency, which surged 0.7% against both dollar – allowing cable to cross $1.325 – and the euro. In turn this dragged the multinational-laden FTSE lower, preventing the UK index from indulging in the same North Korea and Hurricane Irma-related relief that lifted the US markets last night and is continuing to work its magic on the DAX and CAC, which are up 0.6% and 0.7% respectively.
Looking to this afternoon and there is little to challenge that UK inflation figure for market-dominance. The Dow Jones is set to open 0.2% higher after the bell, leaving the index at 22100 for the first time in just over a month. That’s mighty close to a new all-time high, and around 80 points away from the Dow’s record intra-day peak. In terms of data all that’s on offer is the JOLTS job openings reading, with analysts expecting a drop from 6.16 million to 5.96 million month-on-month.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number.