United States Consumer Price Index Data Will Be Released Today.

The foreign exchange markets will be busy with activity on the 13th of September 2023, as markets kept a keen eye on the currencies GBP, EUR, and USD. A slew of key economic data releases and global events made for an eventful trading day:

GBP (British Pound): The British Pound (GBP) continued to exhibit resilience in the midst of a busy week. Following yesterdays release on UK employment data, the GBP fails to find inspiration.

The GBP/USD is continuing its decline, nearing the 1.2400 level as a result of the UK economy’s contraction in July, which exceeded expectations. According to the Office for National Statistics (ONS), the Gross Domestic Product (GDP) contracted by 0.5% compared to June, which was worse than the anticipated 0.2% contraction.

Markets await the release of the UK Consumer Inflation Expectations this Friday, hoping to gather a little more insight on what’s to come in the coming months.

EUR (Euro): The Eurozone Industrial Production s.a. was released today at -1.1% being 0.4% less than expected and 1.5% less than last months figure. With the less then expected results, more pressure is being applied to the EUR, causing European stocks to decline further than expected.

Market are anticipating the release of European Central Bank data scheduled for tomorrow. This data release is expected to offer valuable insights into the decision-making process behind European Monetary Policies.

USD (United States Dollar): The United States Dollar (USD) remained in focus as markets tracked economic data releases and global developments.

Markets are trading with caution ahead of the United States consumer price index release. With last months being at 3.2%, the increase in gasoline prices expect to push this months CPI up to 3.6%. This figure is expected to add support to the US dollar.

The EUR/USD is reversing it’s rebound with yesterdays release of Spain’s Harmonized Index of Consumer Prices as investors resort to profit-taking ahead of CPI data release.

Moreover, markets continue to monitor statements from officials of the Federal Reserve concerning monetary policy decisions. The trajectory of the USD remained closely linked to the Federal Reserve’s stance on interest rates and the overall economic outlook.

Key Data Releases:

• United States Consumer Price Index (CPI): Market caution prevailed ahead of the release, with expectations of an increase to 3.6% from the previous month’s 3.2%. This figure was expected to provide support to the US dollar.
• Eurozone Industrial Production s.a.: The data showed a decrease of -1.1%, which was 0.4% less than expected and 1.5% less than the previous month’s figure. This led to additional pressure on the EUR and impacted European stocks.
• Upcoming European Central Bank (ECB) Data: Markets are anticipating this data release, as it is expected to offer insights into the ECB’s decision-making process regarding European monetary policies.

Economic Calendar