UK Inflation Moves To 2% Target On Lower Air Fares, Car Prices

Trading 19 juin 2019 Commentaire »

UK inflation slowed to the central bank target in May, thanks to lower costs for air travel and falling car prices, data from the Office for National Statistics showed Wednesday.

Consumer price inflation hit the Bank of England's target of 2 percent in May versus 2.1 percent in April. The rate also matched economists' expectations.

The annual decline was largely driven by easing fares for transport services, particularly air fares due to the timing of Easter and falling car prices. Partially offsetting, upward contributions came from higher costs of range of games, toys and hobbies.

On a monthly basis, consumer prices gained 0.3 percent versus 0.4 percent rise a year ago. Monthly inflation also came in line with expectations.

Core inflation that excludes energy, food, alcoholic beverages and tobacco, slowed to the weakest in more than two years to 1.7 percent in May from 1.8 percent in the previous month.

A number of transitory factors such as the recent weakness in sterling may lift consumer prices back above target in the months ahead, Suren Thiru, head of economics at the British Chambers of Commerce, said.

"However, as firms unwind historically-high stock levels, economic conditions are expected to weaken, which should keep inflation close to the Bank of England's 2 percent target for some time to come," Thiru added.

The BoE is set to keep its key rate and quantitative easing unchanged at the June monetary policy meeting. The announcement is due on Thursday.

The bank is expected to stick to its reasonably hawkish mantra at tomorrow's meeting, James Smith, an ING economist said. However, it is unlikely the Bank will get an opportunity to tighten further this year.

The consumer prices index including owner occupiers' housing costs advanced 1.9 percent annually in May, slower than the 2.0 percent increase in April, the ONS reported.

Another report from ONS showed that the factory gate inflation slowed in May due to weak petroleum prices.

Output price inflation slowed for the third straight month in May, to 1.8 percent from. 2.1 percent in April. But this was slightly above the forecast of 1.7 percent.

Month-on-month, output prices rose 0.3 percent, the same rate as seen in April but faster than the expected 0.2 percent.

Further, data showed that input price inflation eased sharply to 1.3 percent from 4.5 percent in April. This was the lowest since June 2016. Nonetheless, the rate was above the forecast of 0.8 percent.

On a month-on-month basis, input prices remained flat versus the expected growth of 0.2 percent.

Separately, the ONS said house price inflation slowed to 1.4 percent in April from 1.6 percent in March. The lowest annual growth was in London, where prices fell 1.2 percent over a year ago.


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*Canadian Dollar At 4-week High Of 1.4942 Against Euro

Trading 19 juin 2019 Commentaire »

Canadian Dollar At 4-week High Of 1.4942 Against Euro


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*Canadian Dollar Rises To 5-day High Of 81.30 Against Yen

Trading 19 juin 2019 Commentaire »

Canadian Dollar Rises To 5-day High Of 81.30 Against Yen


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*Canadian Dollar Climbs To 0.9164 Against Australian Dollar

Trading 19 juin 2019 Commentaire »

Canadian Dollar Climbs To 0.9164 Against Australian Dollar


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*Canadian Dollar At 5-day High Of 1.3342 Vs U.S. Dollar After CPI Data

Trading 19 juin 2019 Commentaire »

Canadian Dollar At 5-day High Of 1.3342 Vs U.S. Dollar After CPI Data


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Loonie Climbs Following Canada CPI

Trading 19 juin 2019 Commentaire »

After the release of Canada consumer inflation for May at 8:30 am ET Wednesday, the loonie advanced against its major counterparts.

The loonie was trading at 81.18 against the yen, 0.9170 against the aussie, 1.4955 against the euro and 1.3349 against the greenback around 8:31 am ET.


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*Canadian Consumer Price Index Rose 2.4% Year-over-year In May

Trading 19 juin 2019 Commentaire »

Canadian Consumer Price Index Rose 2.4% Year-over-year In May


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Loonie Steady Ahead Of Canada CPI

Trading 19 juin 2019 Commentaire »

Canada consumer inflation for May is due at 8:30 am ET Wednesday. Ahead of the data, the loonie was steady against its major counterparts.

The loonie was worth 81.04 against the yen, 0.9190 against the aussie, 1.4988 against the euro and 1.3377 against the greenback as of 8:25 am ET.


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*De Guindos Says ECB May Opt For Mix Of Actions To Ensure Price Stability – CNBC

Trading 19 juin 2019 Commentaire »

De Guindos Says ECB May Opt For Mix Of Actions To Ensure Price Stability - CNBC


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Trading Plan 19/06/2019 EURUSD

Trading 19 juin 2019 Commentaire »

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The ECB President Draghi tried to lower the euro on Tuesday, June 18: Draghi said that the ECB could make the policy even softer in July. This, however, did not greatly lower the EURUSD rate. The fact is that the possibilities of the ECB to stimulate growth are almost exhausted: the ECB rate is zero, for deposits for banks and generally minus 0.4%. A new incentive package (cash infusion) is unlikely. The moment of the rate increase has been postponed until mid-2020. No tools. Do not forget that the term of office of Draghi is already expiring on October 31 of this year - and the new head of the ECB may have a more conservative view.

The move is now for the Fed - today, June 19, at 21:00 Moscow time, the Fed will announce its policy. In case of a statement of readiness to lower the rate, the Fed is able to turn the dollar to fall - and send the EURUSD rate sharply to the top.

In addition, on Tuesday, June 18, important news about the Trump-China trade war came out. Trump had a telephone conversation - Xi Jing Ping - on trade disputes. According to the US. the conversation is very positive - and negotiations will continue at the G-20 summit next week.

Euro:

Purchase from 1.1250.

Sales from 1.1108.

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