GBP: UK CPI Preview: Decline in Inflation May Reinforce Rate Cut Expectations
UK CPI index for the month of February is expected at 3.6% it is lesser expected from January month data of 4.0%. The inflation price pressures in UK is caused by War in Israel- Gaza leads to energy prices soaring, Domestic wages increased and tightening labour market.The Core CPI is expected to fall at 4.6% in February than 5.1% printed in January month.
UK’s ONS to Release CPI Data Ahead of BoE Announcement
GBPUSD is moving in uptrend line and market has reached higher low area of the pattern
Pound traders await CPI report for BoE rate cut clues
Expectations for UK Inflation Report
– UK CPI anticipated to rise 3.6% in February, down from 4.0% in January
– Core CPI expected to drop to 4.6% YoY from 5.1% in January
– Monthly CPI likely to rebound 0.7% after January’s 0.6% drop
BoE’s Stance Amid Economic Outlook
– BoE maintains key rate at 5.25% in February
– Governor Bailey remains non-committal on rate moves, emphasizes need for restrictive policy
– Geopolitical and domestic factors pose upward risks to CPI
Market Attention on CPI Details
– Food prices and services inflation crucial in context of BoE policy
– Analysts anticipate downward trend in inflation due to base effects, with services remaining focus for MPC.
GBP: “Pound Sterling Suffers Sell-Off Amid Dampened Market Mood”
UK CPI index for the month of February is expected at 3.6% it is lesser expected from January month data of 4.0%. The inflation price pressures in UK is caused by War in Israel- Gaza leads to energy prices soaring, Domestic wages increased and tightening labour market.The Core CPI is expected to fall at 4.6% in February than 5.1% printed in January month
EURGBP is moving in the Box pattern and the market has rebounded from the support area of the pattern
GBP Continues Losing Streak Ahead of Central Bank Decisions
The Pound Sterling faces its fourth consecutive decline as investors adopt a risk-averse stance amidst significant central bank meetings. With the Fed and BoE expected to maintain current rates, attention shifts to rate outlook clues.
In the UK, focus lies on the BoE’s policy statement for hints on rate cut timing. Reduced headline inflation, stemming from prolonged high interest rates, fuels expectations for cuts in August.
Pre-BoE decision, eyes are on UK CPI data for February, expected Wednesday. Soft inflation may hasten rate cut expectations, while strong data could prolong uncertainty.
Market Movers: GBP Dips Amid Cautious Sentiment
GBP falls to 1.2700 support amid subdued market sentiment ahead of key central bank meetings. Uncertainty surrounds Fed rate cut expectations amid recent high inflation, boosting demand for safe-haven assets.
USD Index rises to 103.80 on expectations of Fed maintaining hawkish stance post-Wednesday’s meeting.
Focus on BoE’s Thursday decision, with interest rates likely to remain at 5.25%. Attention shifts to cues on future rate cuts, expected to commence in August.
UK CPI data for February to influence August rate cut expectations, with forecasts suggesting a decrease in headline and core inflation, alongside a sharp monthly CPI growth.
GBP: “Next BoE Move: Sterling’s Uncertain Future”
UK CPI index for the month of February is expected at 3.6% it is lesser expected from January month data of 4.0%. The inflation price pressures in UK is caused by War in Israel- Gaza leads to energy prices soaring, Domestic wages increased and tightening labour market. The Core CPI is expected to fall at 4.6% in February than 5.1% printed in January month
GBPUSD is moving in descending channel and market has rebounded from the lower low area of the channel
Money markets and signals suggest first BoE rate cut by late summer, but economists offer contrasting views.
Speculators increase sterling holdings; swaps markets project 25bp cut earliest by August.
Sterling leads G10 currencies against the dollar in 2024.
BoE likely to maintain 5.25% rate this week, but economists anticipate earlier cuts.
Analysts: May or June cuts possible; hawkish BoE rhetoric under scrutiny.
BoE’s inflation forecast questioned; outlook may turn dovish if expectations fail.
Inflation expected to drop to 3.6% in February; lower print could prompt May rate cut bets.
Sterling’s future uncertain; US inflation data could impact strength.
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