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Sterling opens above 1.3800 to the Dollar

Sterling opens above 1.3800 to the Dollar

With a November rate rise from the Bank of England fully priced into market expectations, the UK inflation data showing a slight decrease in CPI meant Sterling dipped to lows below 1.3750 against the dollar and the Euro rallied to 1.1820. Profit taking was also evident but rate rises predicted for further out remained intact.

Euro-zone CPI inflation was confirmed at 3.4% for September from 3.0% previously with the core rate at 1.9%, but there was little impact on the Euro itself. EUR/USD closed firmer but was limited at 1.1660. The pair seems to have gone into a consolidation phase around mid-1.1600s and would need to break above 1.1700 to see further gains according to many economists.

This morning Sterling opens above 1.3800 to the Dollar and the Euro around 1.1862. 

Todays data flash reading of EU consumer confidence for October is forecast to decline slightly and at midday US initial jobless claims. The next significant UK data will be business and consumer confidence data together with retail sales on Friday.


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