UK Pound Inches Higher as Forex Traders Look Ahead

UK pound is moving higher against its major counterparts in Forex trading today as traders await data later this week. Inflation, employment and remarks from a member of the MPC are in the works and many Forex traders are waiting on these events.

Even though many expect to see a dip into negative territory for inflation, that isn’t having a huge impact on the pound right now. The dip probably won’t cause the Bank of England to change its current course, with the bond buying program remaining in place and not expanding. Many traders are also hoping that BOE Deputy Governor Minouche Shafik will have some insight to share about inflation and policy on a panel she will be participating in at a seminar discussing monetary moves after the 2008 crisis.
Better news is expected in terms of unemployment, though. UK unemployment is supposed to fall, and wage growth is expected to remain strong. As a result, many expect to see a BOE rate hike sometime in the middle of 2016.
While it’s not stellar news, it is enough to give sterling a slight edge against its counterparts for today.
At 13:31 GMT GBP/USD is up to 1.5363 from the open at 1.5317. EUR/GBP is down to 0.7401 from the open at 0.7419. GBP/JPY is up to 184.5640 from the open at 184.0950.

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