In the latest of our previews we turn the spotlight on UK CPI/RPI/PPI all coming out at 09.30 GMT
Expectations:
It's a low inflation environment prevailing in much of the developed economic world right now and there's little sign of that changing
In the latest BOE report that I published here they said that GBP strength would continue to dampen inflation after H2 2016 also citing that 80% of the inflation shortfall is due to energy, food and other imports.
All in all it was a bearish outlook and I'm not expecting any surprises to the top side Ryan had this to say on last month's release and the ONS cited a smaller than usual rise in clothing prices and falling motor fuel prices as the main contributors to the fall in the rate.
Price action at the moment is favouring the pound with GBPUSD finding support at 1.5185 as EURGBP posts 3 1/2 month lows of 0.7015
Levels to watch out for are 1.5220 and 1.5250 with demand into 1.5150 then 1.5130 and 1.5100.
EURGBP has more buyers into 0.7000 then 0.69850 and 0.6950 with sellers at 0.7035,0.7050.0.7085 and 0.7100
As always trade what you see but expect immediate knee-jerk with traders looking to make the most of any opportunity in these fragile markets.
