inflation

Forex Trading News: Soaring UK Inflation Starting to Rule out Rate Cut

Mr. Danish FX — Tue, 12 Aug 2008 05:27:15 -0400

As UK food prices soar, the CPI rose to 4.4% in the largest single jump with the highest rate since this data has been recorded in 1997. This is over twice the inflation target for the UK at 2%. With such high inflation data, the chances of a UK rate cut have become very slim.

According to Philip Shaw, an economist from Investec: "It is very disappointing data with widespread signs of higher price pressure...It will undoubtedly convince some members of the Monetary Policy Committee (of the BOE) to vote for higher rates but we doubt they will reach a majority."

Forex Special Report. The Fed's Change of Heart on the Dollar

Greg Michalowski — Tue, 03 Jun 2008 18:57:34 -0400

For an analysis of the Bernanke comments and why it might be important for the dollar, please click on the following Attached File.

Forex Trading: Oil at $121.00 means lower dollar

Greg Michalowski — Tue, 06 May 2008 10:11:16 -0400

The inflation goes higher and the dollar comes down. EURUSD has no problem getting through the 1.5571 level. Support at that level now.

Will Inflation Expectations Rise?

Greg Michalowski — Fri, 14 Dec 2007 09:26:15 -0500

With the recent higher than expected inflation reports for both CPI and PPI, the market will be watching what the Fed Officials say in terms of the key words "Inflation Expectations". It is ok in the Feds eyes to have inflation as long as Inflation Expectations from consumers and businesses don't materialize.

If it is perceived that Inflation Expectations are starting to rise, the Fed may actually be forced to raise rates (according to their words at least) as the Fed would be concerned about the prospects for spiraling inflation which is just no good.

German state inflation reports being reported

Greg Michalowski — Fri, 26 Oct 2007 08:11:57 -0400

German state of Hesse CPI +0.2% m/m vs consensus +0.1%.

German state of Bavaria CPI +0.1% m/m