As it was expected, the British pound repeated the euro’s movements; the rate fell 8 points yesterday.
At 12:30 (GMT+4) Inflation Report Hearings are released. PPI Input and PPI Output data are forecast to be lower than in August (0.0% vs. 2.0%). Core Consumer Price index is foreseen to come out in line with expectations at 2.6%. Retail price index is awaited to be lower, 2.6% against 2.9% in August. House Price index is expected to be lower the previous data, 1.9% vs. 2.0%. The provided data is likely to ease the Bank of England’s fears about inflation. Taking into account possible Trade Surplus in the Eurozone and increase in U.S. industrial production, the British pound may grow in line with the stock market.
Technically, the ascending move may develop in case the rate fixes above 1.6084 with targets at the levels of 1.6125, 1.61966. In case the rate is in the negative territory, the rate may reach the level of 1.6047, if the level of 1.6047 is broken.