January 16 2006 Monday
3:30am UK Producer Price Index m/m (Input)
0.9% 0.6% 1.4percent 3:30am UK Producer Price Index m/m (Output)
-0.2% -0.2% 0.1%
156 Pip daily range between low and high with an 18 pip move in the statement of report
January 16 2006 Monday
3:30am UK Producer Price Index m/m (Input)
0.9% 0.6% 1.4percent 3:30am UK Producer Price Index m/m (Output)
-0.2% -0.2% 0.1%
156 Pip daily range between low and high with an 18 pip move in the statement of report
GBP is gaining against USD, I am wondering. . What are the reasons?
Is it Due to the Interest Rate? Both USD and GBP have exactly the same 5.25percent interest rates. No one have any advantage at all. GBP is perceived to increase rates further this season while most expect a rate reduction for USD. Maybe this is a reason?
Is it Due to the Economy? US GDP is roughly 2.0%; UK GDP is below 1.0%. Its economy is doing.
Is it due to Politics? No comment here - I dont know what's brewing in the arena for all these coutries.
One thing that I know that is GBP Positive is the MA. There's been lots of UK firms being sold out.... From my perspective, if UK stored selling more firms, there wont be any UK Business to induce the UK Economy...
Ultimately, the Carry Trades! Extended GBPJPY kept piling now that UK just increased the rates to 5.25%! I bet that this is just another GBP reason. But what if those carry traders unloaded?