The July Producer Price Index

Posted on Wednesday, August 17th, 2011 at 12:08 pm in News by The Agent.

Foreign exchange news on buying property abroad

Will there be more policy makers in favour of either a rate hike or further QE, after CPI figures yesterday showed an increase to 4.4% as UK and Bank of England minutes are due out at 0930 am.
UK Jobless Claims Change. Have unemployment benefits jumped or will it show UK labour market is gaining strength??
Core CPI figures are due at 10 am from the Euro zone, expected to come out at 2.5%, still above their target level of 2%
The July Producer Price Index is due in America at 13.30 pm which gives an early indication of inflation, as this measures the changes in the selling prices, producers charge for goods and services.

IN THE UK

UK Consumer Price Index accelerates to 4.4% in July, up from 4.2% in June and beats expectations for a 4.3% increase.
Bank of England Governor, Mervyn King, hints at potential hike in rates to curb inflation and didn’t rule out further QE.
GBP/EUR hits a low of 1.1331 and a high of 1.1411 and GBP/USD hits a low of 1.6322 and a high of 1.6430

ELSEWHERE

Euro falls across the board on the back of weak German and Eurozone growth data, sparking concerns about a slowdown and damping risk appetite
Germany GDP growth slows to 0.1 percent in the second quarter, less than a forecasted 0.5 percent.
GDP data from the euro zone showed the regions economy grew by a mere 0.2 percent over the same period (second quarter).
US Housing starts fell 1.5% in July to hit a seasonally adjusted 0.60 million, in line with expectations
US building permits fell more than expected in July, by 3.2% to an adjusted 0.60 million, down from 0.62 million in June. Forecasts were for a decline of 1.9 percent to 0.61 million.
In Australia, minutes of the RBA’s meeting on the 02nd August, showed that policy makers extended a pause on interest rates due to global growth concerns.
Chancellor Merkel and President Sarkozy call for ‘true economic governance’ after their meeting to help combat the spiraling debt in the Eurozone.

Key Support and Resistance Levels
	Support			Resistance
GBPUSD	1.6200	1.6260	1.6355	1.6510	1.6570	1.6665
GBPEUR	1.1230	1.1279	1.1346	1.1462	1.1511	1.1578
EURUSD	1.4230	1.4291	1.4349	1.4468	1.4529	1.4587

Currency Exchange

From:

To:

Amount: