UK cost of living continues to rise

  Today is all about UK inflation data for January. In the run-up to it, a survey of a number of economists has revealed prices are expected to have risen by 2.9 per cent on an annualised basis. The data follow the Bank of England’s hawkish rhetoric last Thursday. And should the figures show accelerated […]

13th February 2018 | Miles Eakers

 

Today is all about UK inflation data for January. In the run-up to it, a survey of a number of economists has revealed prices are expected to have risen by 2.9 per cent on an annualised basis. The data follow the Bank of England’s hawkish rhetoric last Thursday. And should the figures show accelerated inflationary pressure, it is likely to strengthen the Pound.

US President Donald Trump yesterday, 12 February unveiled his proposed infrastructure plan. The programme details big increases in military spending, roads, airports and other public works. Altogether, the US administration wants to invest an additional $1.5 trillion over the next 10 years.

The fiscal plan, which Congress still has not passed, would contain $80 billion more funding for the military – a total increase in Pentagon spending over two years will amount to $165 billion.

American stock markets made significant gains yesterday, with the S&P 500 gaining 1.39 per cent. The positive sentiment is likely to continue as we expect European equities will push higher this morning.

EUR/USD $1.2302 (+$0.0011)

EUR/USD maintains a firm undertone in Asian trading after extending marginal gain above yesterday’s high at 1.2297 to 1.2307 ahead of Asian open after tripping stops above 1.2300. From a technical view, we look for resistance at today’s high of $1.2307 before l.2335 and $1.2405. On the downside, 1.2283, 1.2240 and 1.2215.

GBP/USD $1.3846 (+$0.0010)

GBP/USD Is slightly firmer overnight on some broad based Dollar weakness .  Sterling did nudge higher after comments from the BoE’s Vlieghe although this proved short lived as the pair fell to a low of $1.3794 this afternoon. From a technical view support at 1.3830, 1.3797 . Resistance at 1.3853, 1.3876 and 1.3902.

USD/JPY ¥108.30 (-¥0.34)

USD/JPY has pulled back overnight as the Nikkei stock market surrendered gains and the Yen gained on risk aversion metrics.  We look for support at 1.0816, 108.00. Resistance at 1.0877 and 109.00.

GBP/EUR €1.1250 (+€0.0001)

GBP/EUR Is becalmed overnight having traded in very tight ranges .Beyond today’s low, we look for support at Wednesday’s low of €1.1236 and Tuesday’s low at €1.1220. Resistance at 1.1265 and 1.1300.

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