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19 May 2015
UK CPI's accelerate Sterling lower - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman noted and explained that Sterling was already coming under pressure, but the negative CPI print accelerated the push lower.
Key Quotes:
"April consumer prices rose 0.2% on the month, which was half as much as the consensus expected. This was sufficient to push the year-over-year rate into negative territory (-0.1%) for the first time since at least 1960."
"The core rate also was lower than expected at 0.8%. The consensus was for an unchanged reading of 1.0%."
"The implied yield of the short-sterling futures strip fell in response. Next year's implied yields are off 4-5 bp, and 2017 yields are off 6 bp."
"UK gilts yields are off 6 bp, among the least in core Europe. The FTSE is also lagging, though it is up 0.4% near midday in London."
Key Quotes:
"April consumer prices rose 0.2% on the month, which was half as much as the consensus expected. This was sufficient to push the year-over-year rate into negative territory (-0.1%) for the first time since at least 1960."
"The core rate also was lower than expected at 0.8%. The consensus was for an unchanged reading of 1.0%."
"The implied yield of the short-sterling futures strip fell in response. Next year's implied yields are off 4-5 bp, and 2017 yields are off 6 bp."
"UK gilts yields are off 6 bp, among the least in core Europe. The FTSE is also lagging, though it is up 0.4% near midday in London."