NEW! Investment Companies Centre

FX round-up: Sterling rises as inflation jumps

News for Spread Betters

PreviousPrevious
NextNext

There's a new Investor Edition of CMC Markets' spread betting platform... and it's exclusive to DigitalLook.com users...

Get full details about Marketmaker:Investor Edition here. Advertisement

Date: Wednesday 16 Jul 2008

LONDON (ShareCast) - Sterling moved ahead on expectations that interest rates could be raised as annual inflation rose to its highest level since records began in 1997.

Soaring food and fuel prices sent the consumer price inflation up to 3.8% in June, rising from 3.3% the month before, trumping analysts’ forecasts for a 3.6% increase.

It is almost double the Bank of England’s 2% target and may be heading towards 5% or even higher later this year warned Citigroup economist Michael Saunders.

Dollar was lower against the euro on concerns about the banking sector and the economy but did bounce back after a speech from Federal Reserve chairman Ben Bernanke.

Bernanke said the dollar's fall has been a factor in the increase in oil prices and has put "upward pressure" on business costs and consumer prices.

Digital Look have been voted
"Best Research and Information Provider"

4th Floor, Bankside House, 107 Leadenhall Street, London EC3A 4AF.
Registered in England and Wales (registered no. 3678570).