14 Jan 2014
Flash: UK CPI was under the spotlight - BBH
FXstreet.com (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted the markets reaction earlier in Europe.
Key Quotes:
"Second, the UK reported slightly softer CPI figures and moderating home prices."
“This pushed sterling down by a little more than half a cent before bids were found just below $1.6400. The m/m increase of 0.4% brought the y/y rate to the BOE's medium term target of 2% for the first time in four years. “
“On producer prices, we note that input prices were a bit firmer than expected while output prices were spot on, but the differential between the y/y fall in input prices and the rise in output prices widened, which may say something about profit margins“.
Key Quotes:
"Second, the UK reported slightly softer CPI figures and moderating home prices."
“This pushed sterling down by a little more than half a cent before bids were found just below $1.6400. The m/m increase of 0.4% brought the y/y rate to the BOE's medium term target of 2% for the first time in four years. “
“On producer prices, we note that input prices were a bit firmer than expected while output prices were spot on, but the differential between the y/y fall in input prices and the rise in output prices widened, which may say something about profit margins“.