UK Markets Look Inflation Cooling
Key inflation data is due out of the United Kingdom later today and investors will be watching closely to see if there is any cooling to the hot-running economy. The year-on-year number has been running at high levels above 10% but has recently dropped over the last couple of months and traders will be looking for the data to drop further to indicate that rate hikes are starting to take effect. Expectation is for an 8.2% print down from last month’s 8.7% and the Bank of England will be looking for strong evidence of a decrease in inflation if their tightening regime is to halt anytime soon. Traders are expecting plenty of volatility in cable around the event especially if we see a result significantly away from expectation.
Aussie Traders Looking at Employment Numbers Ahead
The Australian dollar has enjoyed a strong run over the last month against the greenback, topping out just under the 69 cents level last week. The next major data release is the employment data on Thursday morning, early in the Asian session. Traders expect this to give some good trading opportunities in the currency. The expectation is for just a 15k increase in employment and for the unemployment rate to remain unchanged at 3.6%, however, any repeat of anything like last month’s surprise 76k prints could see the ‘battler’ off to the races as this would not tie in with the RBA’s forward guidance.
CPI Numbers to Dominate Again
It’s all about inflation data again today as New Zealand, the UK and Europe release their latest CPI numbers. First up in the land of the long white cloud, market expectation is for a 0.9% increase in the quarterly number which should keep the RBNZ happy for the moment, however anything popping to the topside could see them getting twitchy again. The London session opens with the much-anticipated UK number with the expectation for the headline number to still run relatively hot at 8.2% year-on-year. Later in the session, the European number is expected to hit the final CPI y/y number at 5.5%. The New York session sees US Housing starts data and Building Permits data before we swing back to APAC.
