Consumer prices rose four percent in January adding further pressure to the Bank of England to raise interest rates from the current 0.5 percent. As speculation that the Bank will be forced to act within the next two months grows, the pound has enjoyed a boost rising to a two-week high against the dollar earlier today.
Ã¢â‚¬Å“It seems inevitable that rates will need to go up in the next two quarters,Ã¢â‚¬Â said Chris Huddleston, a trader at Investec Bank Plc in London. Ã¢â‚¬Å“The retail data adds to that argument. The market is moving to price in further gains in sterling.Ã¢â‚¬Â
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.