Daily Update - 13th September 2017
Inflation data from the U.K yesterday morning came in stronger than expected from a slew of reports. The Consumer Price Index rose 2.9 percent and the Producer Price Index had a gain of 1.6 percent. The surge in inflation has fueled a spike in the Pound, which is now trading well above the 1.32 level against the U.S Dollar. The strength of the Pound has created downward pressure on the Footsie Index for the time being. U.K traders will remain nervous as the Bank of England approaches with its Monetary Policy Summary on Thursday. A day with reports coming from UK, Europe and US will continue affect the financial market. It will begin with the UK employment report for July. It is a leading indicator for the UK Economy. Claimant Change will present the number of unemployed people in the UK. There is a tendency to influence the GBP volatility. This will be followed by Industrial Production that shows the volume of production of Industries such as factories and manufacturing. Up trend is regarded as inflationary which may anticipate interest rates to rise. In US, Producer Price Index will be released that measures the average changes in prices in primary markets of the US by producers of commodities in all states of processing. Changes in the PPI are widely followed as an indicator of commodity inflation. The day will end with Monthly Budget Statement released by the Financial Management Service summarizes the financial activities of federal entities, disbursing officers, and Federal Reserve banks. A positive budget statement that receipts exceed budgetary outlays is seen as bullish for the USD. Yesterday’s Focus
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