UK Inflation data as expected
Fed chair Janet Yellen spoke yesterday, not offering any fresh hints to the market but highlighting the progress made in unemployment and inflation, commenting that “a gradual path of increases in short-term interest rates can get us to where we need to be”. Geo-political tensions continue to rise in the Korean Peninsula, weighing on the Korean Won. On the data front today we have Swedish and UK CPI data this morning, with EZ industrial production figures at 10:00am.
Euro/Dollar: Continuing to eye up support at 1.05.
Euro/Sterling: Consolidating for now between 85p and 0.8590.
As expected core inflation in the U.K. edged lower and came in at 1.8% v estimated 1.9% the headline figure was in line with market expectations. Sterling traded to .8522 from .8540 on the release. Sterling also supported by better than expected March Factory output data which came in slightly better at 3.6% v estimated 3.4%.Tel: 1800 30 30 03 / +353 (0)1 790 0000