disappointing BOE inflation report causes a sell-off in cable

Some improvement in the US data yesterday helped bring about some dollar strength before headlines pertaining to the Middle East contributed to price volatility.

Cable got sold off yesterday and a somewhat disappointing BOE inflation report. The general tone was dovish commenting that risk remains to the level of inflation. UK unemployment data was disappointing as well.

Aussie traded weakly in London session as Moody’s placed the 4 major Australian banks on watch for possible downgrade.

Today we have quite a lot of data coming out of the US especially the US CPI.

Data today

Euro zone consumer confidence – 3pm GMT

US CPI – 1.30pm GMT

US Initial Jobless Claims – 1.30pm GMT

US leading indicators - 3pm GMT

US Philadelphia Fed index – 3pm GMT