Forex Weekly Round Up 14 September 2015 – 18 September 2015

The UK consumer inflation expectations came out at 2.0% at 09:30 last Friday morning, both weaker than expectations and the previous release of 2.2% for the previous month, capturing the continued impact of lower oil prices and the slowdown in China. GBPUSD sold off following the data announcement, but recovered before the end of the trading day in London, ending down on the day, but not significantly so.

UK inflation returned to zero in August, down from July’s rate of 0.1%. Consumer prices were unchanged compared with a year earlier following a 0.1% annual gain in July.

Over in Europe, with the Greek election due to take place on Sunday, Greece’s two political heavyweights are deadlocked in the most recent poll with both the Syriza and New Democracy party tied at 31.6% each.

Inflation across the Eurozone unexpectedly weakened last month; the figures raised analysts’ expectations that the ECB will expand its quantitative easing policy by the end of the year. The annual rate of inflation fell to 0.1% in August from 0.2% in July.

Retail sales in the US climbed for a second straight month, a sign consumers may be to concerned about recent volatility in financial markets, especially in China. The 0.2% increase in August followed a 0.7% gain in July that was larger than previously reported.

On Thursday evening the Dollar lost ground against a host of it’s counterparts after the Federal Reserve decided to keep interest rates near zero, citing global risks as a key factor during a dovish statement.

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