Are you looking for an event with the potential to create a stir on the british pound in particular, and the forex market in general ? Well aware that the United Kingdom will publish this week 3 reports that will no doubt lead to some volatility on the forex. Let us look at this in more detail.
On Tuesday, analysts expect to see a slight decline in the CPI for the month of may. The annual rate should, however, remained unchanged at 2.7%. The Index of producer Prices will also be published at the same time. It could show a decrease of the price pressure on inflation.
This being said, the weakening of inflation is not necessarily a bad thing for the economy of the United Kingdom. In the course of the last me, the policy makers have, indeed, been concerned by the fact that households were beginning to feel the effects of higher prices of raw materials, then inferior outcomes may benefit the sector of consumption.
Results a higher level than expected could revive discussions on the tightening of the BoE. Some members have, in effect, already pointed to the fact that it is necessary to raise interest rates to keep inflation under control.