Trading Ranges Continue To Prevail
Given the largely uneventful macro backdrop, the main currency pairs continue to operate within narrow trading ranges with most, if not all of the majors opening this morning broadly unchanged from the previous 24 hours.
In level terms, EUR/USD starts the day once again near to the 1.18 threshold whilst the GBP/EUR remains in and around the 1.17 area. Elsewhere, GBP/USD continues to trade within the 1.38-1.39 range but does look like it wants to move higher.
On the data front this morning, UK CPI data for August was released. The headline rate rose sharply to 3.2% y/y from 2% in July and above the consensus forecast for 2.9%. UK inflation is expected to rise further over the coming months. However, the BoE anticipates that it will ease back noticeably next year.