Corporate foreign exchange news
Foreign exchange news: Pound dependent on CPI
Monday, 12 October 2009 10:02:51 GMT

Foreign exchange trading movements in the pound this week will be dictated by the publication of the latest Consumer Price Index (CPI) tomorrow (October 13th), analysts have claimed.Although the foreign exchange analysis site Daily FX has issued a fundamentally bearish forecast for the pound, it is expecting a week of turbulent and exciting trading, with last week's rout deemed to have overlooked more bullish fundamentals.The pound was the only major currency to lose ground against the dollar last week, with dismal industrial output figures putting the dampers on sterling buying activity.However, quantitative strategist David Rodriguez noted that the Bank of England's policy statement last week offered support for the long positions on the currency, something which foreign exchange brokers may act upon if tomorrow's CPI figures are strong. Figures released last month for August showed annual CPI inflation at 1.6 per cent, down 20 basis points month-on-month, while Retail Price Index inflation climbed to -1.3 per cent.



