Daily Alert – Wednesday 16th November 2022: UK inflation hits 11.1 percent

Mark NugentDaily Alert, Nov 2022

Daily Alert – Wednesday 16th November 2022: UK inflation hits 11.1 percent

Good morning.

Monday’s indecisive risk sentiment spilled over into Tuesday.

Eurozone Q3 GDP came in on target at 0.2 percent, although the European Central Bank has said the chances of a recession are increasing.

Early this morning, UK CPI hit 11.1 percent vs an expectation of 10.7 percent. That’s headline CPI, so it contains the volatile elements of fuel and food. The Bank of England’s mandate is to keep headline inflation at 2 percent. Of more statistical significance is Core CPI, with fuel and food taken out. That stands at 6.5 percent vs an expectation of 6.4 percent and shows that, like other nations, inflation is embedded in the wider economy.

In terms of trading, I watch and wait for equities to reverse and for the GBP and USD to reflect their fundamentals. This is what trading is often about: watching and waiting. We don’t trade until everything is lined up. That way we maintain a good win:lose ratio and a healthy trading account.

I’ll be back tomorrow.

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