This morning, the British pound remains in a dominant position after bumper gains yesterday. The GBP/JPY and GBP/USD spiked yesterday after CPI, PPI and RPI rose more than expected. The EUR/GBP also accelerated its slump.
The yen pairs are holding yesterday’s substantial gains, with the exception of the USD/JPY which continues to slip back.
Dollar pairs are generally mixed, with most making gains as the US dollar continues to slip.
Coming up today, we have UK average earnings index and claimant count change and unemployment claims at 09.30.
At 13.30, we get US PPI, followed by US crude oil prices.
The EUR/GBP has continued its slump but could have further to go with UK inflation on the rise, while the EU looks to unwind its QE activities. Two opposing forces could cause further downside.