Daily Alert – Wednesday 17th November 2021: UK CPI ensures rate hike in December

Mark NugentDaily Alert, Nov 2021

Daily Alert – Wednesday 17th November 2021: UK CPI ensures rate hike in December

Good morning traders.

Yesterday was solidly risk-on. Retail Sales beat expectations in the US and the GBP was boosted by above expectation prints on Unemployment Rate and Average Earnings Index. This morning, the GBP was further boosted by CPI coming in at 4.2 percent against an expectation of 3.9 percent. The GBP continues to move up. The markets expect Bailey and his merry men and women to hike interest rates at the December meeting.

WTI (oil) is directionless as markets try to digest what it may mean if both the US and China dip into their strategic petroleum reserves to mitigate the current relatively high price.

I almost went short on EURUSD but felt I was a bit late to the party as it has been dropping for five sessions. Steve took GBPJPY long, which so far is working out well.

We’ll be back tomorrow.

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