Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Forex News: Sterling Rallies as Tuition Fees Send Inflation Past Expectations  Join our daily free Newsletter

MENAFN - DailyFX - 13/11/2012

No. of Ratings : 0
Add to Mixx!


 


THE TAKEAWAY: UK annual inflation at 2.7% in October -> Tuition fees send consumer prices higher than expected -> Sterling rallies on higher CPI

A beat in UK inflation expectations sent Sterling higher in forex trading. Annual inflation was seen at 2.7% in October according to the release of the consumer price index; that is the highest inflation in five months. Expectations were for consumer prices to rise 2.4% annually following 2.2% inflation in September. On a monthly basis, consumer prices were 0.5% higher, according to the UK Office for National Statistics.

The biggest contributor to the rise in prices in October was university tuition fees, which were up 19.7% annually. There were small moves higher in the prices of food, beverages and transport. Housing and household services saw a small decline in prices.

The unexpected rise in prices reduces pressure on the Bank of England to increase monetary stimulus, which will likely be finished in the near future. The BoE maintains a 2% inflation target, and the bank will try to avoid monetary action that will drive inflation further from their target.

Adding to monetary stimulus is Sterling negative, therefore the sterling rallied in currency markets following the news of a rise in inflation. GBPUSD rallied to near 1.5900, where it found possible resistance by the key figure and the 61.8% retracement of the decline from April through June. Support could be provided by a 4-month upward trend line and the 200-day moving average, which both sit near 1.5850.

GBPUSD 15-minute: November 13, 2012

Sterling_Rallies_as_Tuition_Fees_Send_Inflation_Past_Expectations_body_gbpusd.png, Forex News: Sterling Rallies as Tuition Fees Send Inflation Past Expectations

 






  MENA News Headlines


 
Click to Apply






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help