The headline reading for U.K. inflation is expect to weaken further in August, and fading risks for inflation could lead the British Pound to break out of its narrow range as investors scale back expectations for a rate hike.
Trading the News: U.K. Consumer Price Index
Why Is This Event Important:
As the Bank of England maintains its dual mandate to ensure price stability while fostering full-employment, a slower pace of price growth would allow the central bank to retain the expansion in monetary policy over the medium-term as it aims to encourage a sustainable recovery.
Raise your hand if you’ve ever heard that expression before? Well, now there’s proof that this well-worn phrase is more than just a pointless platitude: “Royal Bank of Scotland Group indexes that track the performance of four of the most popular currency strategies show that the so-called trend style was the best-performing method, returning 7.3 percent this year through August.”
“Trend-Style” trading is also known as trend-following, and is just as it sounds. Traders identify one-way patterns in specific currency pair(s), and attempt to ride them for as long as possible. Given all o
Source: Reuters
The dollar gave up most early gains against the yen on Friday, heading towards 15-year lows and keeping prospects for yen intervention alive, while the Swiss franc stumbled as investors sold safe-haven currencies. News that Dubai World had reached a deal to restructure liabilities helped ease recently renewed fears about Dubai’s debt woes and boosted risk demand. That pushed the euro up 1 percent on the day versus the Swiss franc, while a rise in Chinese imports boosted commodity currencies including the Australian dollar.
The greenback fell from 1.0225 versus Swiss franc during Asian trade and was supported at 1.0135 at the beginning of the European session. Then US dollar managed to jump and overcome September 3 maximum at 1.0234. US currency is attempting to break above the upper limit of the recent trading range in 1.0059/1.0236 area.