© Dukascopy Bank SA
The Cable entered negative territory in the beginning of the week, after data showed that UK annual inflation remained in negative territory in October, as food, alcohol and tobacco prices all pushed down the consumer price index. The annual rate of inflation fell 0.1% last month, in line with forecasts, after a 0.1% fall in September. It was the first time annual inflation has fallen for two consecutive months since the series was created in 1996. Meanwhile, the consumer price index ticked up 0.1% from a month earlier, matching forecasts after falling 0.1% in September. On Thursday, the Pound showed positive reaction after UK retail sales fell in October, while demand for the Dollar continued to be underpinned after Wednesday's Federal Reserve minutes flagged a December rate hike.
This week sentiment among Dukascopy traders has significantly worsened, as now 70% of traders predict the Pound to lose value, while last week this scenario was suggested by 50% of Community members. Alongside, the average forecast for the end of the week is placed around the 1.508 level. Meanwhile, on Wednesday, the US is going to announce reports on durable goods orders, personal spending, new homes sales and consumer sentiment as well as a report on initial jobless claims, which will be published a day earlier due to the Thanksgiving holiday. Also, traders can pay attention to the Britain's revised data on third quarter economic growth, which is going to be released on Friday.
© Dukascopy Bank SA