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Forex - Pound jumps after UK inflation data point to November BoE rate hike
AFX


LONDON (AFX) - The pound jumped higher after inflation figures showed headline annual CPI inflation dipped as expected in September but continued to suggest that the Bank of England will raise interest rates again next month.

Official data this morning showed annual CPI dropped to 2.4 pct in September, down from 2.5 pct in August, but still well above the Bank of England's target of 2.0 pct. The figure was bang in line with expectations.

'The as-forecast number underpins the expectation that the BoE Monetary Policy Committee will hike the UK base rate by 25 bp to 5.0 pct next month,' said Robert Howard at Thomson IFR Markets.

At 9.43 am, the pound was trading at 1.8643 against the dollar, up from 0.8616 just before the data were released, having briefly jumped to a high of 1.8656 immediately afterwards. The euro meanwhile was trading at 0.6727 stg, down from 0.6734 just beforehand, just off a low of 0.6720.

Moreover, the figures also showed a rise in other measures of inflation, with the core CPI rate rising to 1.4 pct from 1.1 pct in August, its highest level since November last year and above expectations for a much more modest rise to 1.2 pct.

The annual all-items RPI rate -- which is used in pensions payments -- surged to 3.6 pct from 3.4 pct the previous month, its highest level since June 1998 and again above expectations for a reading of 3.5 pct.

jessica.mortimer@afxnews.com

We should all have that downward slopey thingie, Hils ;)
Mine frames a broader channel going back to the highs from the beginning of September to the lows from last week. But I also have a little rising jobbie which was formerly my biggie support [edit: after another tweak since last week :)] and cable's really snuggling up to it now - wondering what'll happen around the 1.87 mark when they meet.

More PPI gubbins this afternoon to make a prettier picture.

really snuggling ;-)

Thats better the flurries of banter have returned. :-)

As I had the morning doing paperwork, I've been playing with cable - profitably this time :-) - Missed a few opportunities as well.

Looks to be rolling over to the short side on my 1 minute chart.

Choccie,

Your downward slopey has got to be different to my one. For a start, mine's a wotsit and yours is a thingie.

:o)

As I see it, cable could retrace anywhere up to around the top line at around 1.9050 of the broader channel. There certainly looks to be more mileage on the dealer chart. I'd prefer to wait until it does actually turn back down, even if it means losing a bit, rather than trying to pre-empt the top and subsequently kicking myself if it carries on going.

Not on my 1-minute it doesn't, Seymour. Looks to be going back up to retest the highs.

You need to be careful imo when the Yanks wake up. They often knock it about to sucker some inexperienced punters out and at the same time put a bit of liquidity into the market to help them get in.

OK Hils, thanks, now moving up again since I posted. No position now, waiting for the US, but probably will be too busy to look this afternoon.

A lovely trending morning this morning, made about half what I should but have been busy with other things.

Quite right, Hils - and your thingie begins with a W and mine doesn't ;)

And if cable gets back to 1.9050 then we'll be hot hot hot :o)

Snuggling, slopey thingies, slopey wotsits, all of which I understand but which pair is chunnel?

EUR/GBP ;)

We don't need it to get back to 1.9050 to be hot hot hot, Choccie.

:o)

Nothin' like a bit of extra fire though :o)

It's a Girl thing LOL

I have a target of 8614 from that news - but I daren't short it yet - do I?

Wow, this threads been active today. Keep it up people!

Major screw up with my ISP at work over the last 2 days and can only log in via 56k dial up :-(

Time to switch ISPs.

Thanks Choccie.

Still learning via mistakes on my dummy account (before I finally admit defeat and convert to covered call options & warrants, etc.!). I am told that there are 5 main "indicators" which if 4 (or ideally all 5) are effectively saying the same thing, ie to go long or short on a partcular pair, then this is the only time you should press the keypad! Is this basically what most of you do or perhaps you all have your own individual methodology, ie. some do graphs only, some use pivot points and histograms, some use MACD only, and so forth.....?

Just curious - M (novice Fx dummy trader - still!!).

Markus - Indicators do exactly what it says on the tin - they only indicate.

The most important thing IMHO is price combined with support and resistance. The indicators may then help to confirm what you see in the price.

You need to sort your own system out so you know it, understand it and trust it.

Then you'll get there in the end.