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16 Dec 2014
EUR/GBP drifting higher ahead of UK CPI data – KBC
FXStreet (Barcelona) - According to the KBC Bank Research Team, the EUR/GBP drifts higher ahead of the UK CPI release, expected to decline to 1.2% Y/Y, seeing any upticks in the pair as selling opportunities.
Key Quotes
“This morning, cable tries to regain some ground, both against the euro and the dollar. Later today, the focus will be on the UK price data.”
“The headline CPI is expected to decline from 1.3% Y/Y to 1.2% Y/Y. The core is expected stable at 1.5% Y/Y.”
“At first sight, these data will give the BoE more room of manoeuvre with the timing of a first rate hike. In a day-to-day perspective, the data might be slightly negative for sterling.”
“However, we expect tomorrow’s BoE minutes to show a much more balanced assessment than the soft tone from BoE Carney. So, any upticks in EUR/GBP still can be seen as an opportunity to sell.”
Key Quotes
“This morning, cable tries to regain some ground, both against the euro and the dollar. Later today, the focus will be on the UK price data.”
“The headline CPI is expected to decline from 1.3% Y/Y to 1.2% Y/Y. The core is expected stable at 1.5% Y/Y.”
“At first sight, these data will give the BoE more room of manoeuvre with the timing of a first rate hike. In a day-to-day perspective, the data might be slightly negative for sterling.”
“However, we expect tomorrow’s BoE minutes to show a much more balanced assessment than the soft tone from BoE Carney. So, any upticks in EUR/GBP still can be seen as an opportunity to sell.”