Sterling rebounds following the CPI data release

Sterling rebounded positively this morning on the back of a better than expected CPI reading, showing an increase of 0.6% against market expectation of 0.5%. Retail sales also rose 1.9% in July against June’s reading of 1.6%. General Transport and alcohol (weather related) were said to have been a major factor, giving importers a timely boost as GBP still struggles for momentum post Brexit.

After German ZEW Survey today the US also releases its CPI data, again with the actual number expected to be bang on the estimation level of 2.3%.

14-month high for the FTSE 100

The FTSE 100 hit a 14-month high yesterday, closing at 6,941.19, with expectations of the magical 7,000 level being smashed if Sterling continues to fall off a cliff. Rumours of more quantitative easing from the Bank of England started the rally, with a number of reports out from the UK this week, hoping to give some insight into how the BoE will move on from the surprise Brexit outcome.

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Article by Lee Chappell, Corporate Dealer
* Information courtesy of Currencies Direct
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