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19 May 2015
UK CPI data no help for GBP? – KBC
FXStreet (Barcelona) - The KBC Bank Research Team previews the UK CPI data release and further shares the outlook for EUR/GBP.
Key Quotes
“Today, the UK price data (CPI, RPI, PPI…) will be published. Headline CPI is expected at 0.4% M/M and 0.0% Y/Y. Core CPI is expected unchanged at 1.0% Y/Y. Of late, the BoE was a bit soft on growth, but looks a bit more vigilant on inflation. However, we see slight downside risks for the April headline UK CPI.”
“Sterling was in good shape after the UK election result, but the rally did run into resistance last week on a soft BoE inflation report. A first UK rate hike in 2015 looks far from evident. The ‘correction’ after the inflation report was moderate, but we don’t see a trigger for a new sterling up-leg. So, more consolidation in the 0.7118/0.7483 range might be in the cards. Within this range we maintain a sell-on upticks bias due to relative euro weakness.”
Key Quotes
“Today, the UK price data (CPI, RPI, PPI…) will be published. Headline CPI is expected at 0.4% M/M and 0.0% Y/Y. Core CPI is expected unchanged at 1.0% Y/Y. Of late, the BoE was a bit soft on growth, but looks a bit more vigilant on inflation. However, we see slight downside risks for the April headline UK CPI.”
“Sterling was in good shape after the UK election result, but the rally did run into resistance last week on a soft BoE inflation report. A first UK rate hike in 2015 looks far from evident. The ‘correction’ after the inflation report was moderate, but we don’t see a trigger for a new sterling up-leg. So, more consolidation in the 0.7118/0.7483 range might be in the cards. Within this range we maintain a sell-on upticks bias due to relative euro weakness.”