The U.S. dollar rose across the board on Friday after August’s consumer prices advanced 0.2%, beating expectations. The core CPI rose 0.3% ahead of a 0.2% forecast. The USD had taken a hit on Thursday after retail sales were lower than anticipated but managed to turn the corner as consumer prices climbed giving food for thought to the members of the FOMC at the data dependent U.S. Federal Reserve.
The Bank of England said today it aimed to revamp the system that underpins British banking and trading in the City of London by 2020 to boost its defenses against cyber-attacks and widen the number of businesses that can use it.
It’s been a quiet start to the day in financial markets but things are likely to pick up considerably, with the Bank of England interest rate decision and minutes due and a raft of data to come from the United States.
British inflation unexpectedly held steady in August, keeping the chance of another Bank of England rate cut on track despite a big rise in raw material costs after June’s vote to leave the European Union.
Today, though, the Cable is hanging by a thread and has given up almost the entire sharp gains made yesterday. But at the time of this writing, the GBP/USD was testing a key short-term support range between 1.3220 and 1.3250, so there was a possibility that it would bounce back here.
The Bank of England will not "stifle" innovation in financial technology with new rules as it seeks to get to grips with its impact, a senior central bank official said on Thursday. Victoria Cleland, the BoE's Chief Cashier, said a priority for the central bank this year was devising its regulatory approach to so-called fintech.
Global investors cut their UK equity and bond exposure in August in the wake of Britain's vote to leave the European Union and sought out higher-yielding emerging markets in reaction to Western central banks' loose monetary policies.