Trading volatility: GBP around UK inflation data
The big three inflation data points are out in the UK on Wednesday 17 April and will likely provide some volatility for sterling.
The big question is whether it’s worth setting up a trade around the pound against the dollar or euro. Having seen the ECB nail its colours to the mast with its rate decision, there may be more stability for GBP/EUR leading up to the event, but GBP/USD is often a more exciting trade prospect. However, on Tuesday there’s US retail sales which may give a steer to that trade and take out some key levels. IGTV’s Jeremy Naylor considers the options.
(AI Video Summary)
UK inflation data
Potential volatility in trading linked to the UK inflation data release on Wednesday, 17th April, at 7 AM UK time, involving consumer, producer, and retail price indices. Key insights suggest that if inflation is stronger than expected, the GBP/USD pair could strengthen, especially if the Bank of England hints at delaying or avoiding a rate cut in August. Analyst Megan Green anticipates inflation may persist, affecting decisions on interest rates.
The GBP/EUR
The GBP/EUR is highlighted as a significant trade, with strategies adjusting based on inflation outcomes and comparative interest rate decisions between the Eurozone and the UK, suggesting potential strengthening of sterling against the euro.
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