Inflation in the UK was up more than expected in May with consumer prices rising 2.7% from a year earlier. This increase was mainly due to transport costs which increased by 0.4% but RPI inflation also increased to 3.1%, up from 2.9% in April.
In contrast, US inflation rose less than forecast as food prices dropped for the first time in nearly four years. The consumer price index was up 0.1% in May after falling 0.4% in April. Slower global growth and restrained wage growth in the US have made it difficult for companies to raise prices. Meanwhile, US housing starts climbed 6.8% to an annualised rate of 914k in May from a revised 856k in the previous month and building permits for new single-family homes rose to a five-year high suggesting the US housing recovery is moving ahead.
German investor confidence rose in June adding to signs of a recovery in Europe’s largest economy. The ZEW index of investor expectations, which aims to predict economic developments six months ahead was up and a second consecutive rise suggesting healthier economic activity ahead.
There was a noticeable lack of volume across most markets yesterday ahead of today’s key Fed rate announcement. The euro gained some ground with EUR/USD reaching a high of $1.3415 before easing back while GBP/EUR fell and is currently trading around the 1.1650 mark.
Posted in Daily Market News on May 30 2014
All rather subdued in the FX markets at the moment. It seems traders are reluctant to take further positions ahead of tomorrow’s key Fed rate meeting when investors will be expecting more clarity on the Fed’s QE policy.
VIEW FULL ARTICLEPosted in Daily Market News on Jun 18 2013 by alex
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