Published by Mark Smith-HalvorsenThe pound closed lower yesterday (July 8th) after a raft of economic data sent conflicting signals to traders.The Bank of England's decision to leave interest rates on hold at a record low of 0.5 per cent had a minimal effect on the forex market, but stronger-than-anticipated industrial output data sent the currency upwards to a two-month high against the dollar.However, these gains evaporated after the latest Nationwide house price index, which showed a decline in prices.The European Central Bank also voted to leave interest rates on hold yesterday, with both rate decisions offering little surprise for forex dealers.Looking ahead to today, Easy Forex reports that the latest UK trade balance figures are expected to show a deficit of £7 billion, while German consumer price index data will also influence trading in the euro.Like many other forex analysts, Easy Forex explained that while there is little support for a UK interest rate hike, inflation is becoming more of a concern to both the central bank and the markets.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site