European session review: the US Dollar trading lower vs British Pound

The following data was published:

(Time / country / index / period / previous value / forecast)

8:30 UK Producer Price Index (m / m) September 0.1% 0.2% 0.2%

8:30 UK producers selling prices index, y / y in September 0.9% 1.1% 1.2%

8:30 UK producers purchase prices index m / m in September 0.2% 0.4% 0.0%

8:30 UK purchasing producer prices index, y / y in September 7.8% 7.4% 7.2%

8:30 UK Retail Price Index m / m in September 0.4% 0.1% 0.2%

8:30 UK Retail Price Index y / y in September to 1.8% 2% 2%

8:30 UK Consumer Price Index m / m in September 0.3% 0.1% 0.2%

8:30 UK Consumer Price Index y / y in September to 0.6% 0.9% 1%

8:30 UK consumer price index base value, y / y in September 1.3% 1.4% 1.5%

The pound rose against the US dollar, approaching 12 October high. Certain influence on the dynamics of trade had inflation data in Britain. The ONS reported that the annual consumer price inflation rose in September to 1.0 percent from 0.6 percent in August, reaching the highest level since November 2014 and showing the biggest monthly gain since June 2014. It was expected that inflation will rise to 0.9 percent, ueled by nearly 20 percent drop in the pound.

Nevertheless, official statistics are waiting for clear signs of the impact from the weakened currency. Much of the growth of inflation in September was associated with the highest monthly rise in prices for clothing, as well as the increased cost of fuel. The data also showed that over the past three months (till September) prices rose by 0.7 per cent. The calculation of basic consumer price inflation - which excludes prices for energy, food, alcohol and tobacco - rose in September to 1.5 percent from 1.3 percent, which was also slightly above economists' expectations of 1.4 percent. Producer prices increased by 1.2 percent, recording the biggest growth in the past three years.

The euro fell slightly against the US dollar due to investors' caution on the eve of ECB's meeting, which will be held tomorrow. In addition, market participants expect the publication of US inflation data. It is expected that in September, the CPI rose by 0.3% after rising 0.2% in August.

EUR / USD: during the European session, the pair fell to $ 1.0988

GBP / USD: during the European session, the pair rose to $ 1.2303

USD / JPY: during the European session, the pair was trading at Y103.80-Y104.10 range