Money News Overview Thursday 18th January 2024: UK CPI inflation figures reinforce the Pound

Today’s economic calendar is light in terms of releases. The most significant release will be the US Employment figures, where it is forecasted that there will be a slight rise in the number of people who have filed for unemployment benefits to 207k.

Elsewhere in the US, the total number of new residential buildings that began construction is set to fall to 1.42 million in December. This release represents a sheer drop from November, when housing stats reached the highest level in 6 months.

European Central Bank President ‘Christine Lagarde’ has recently voiced that there will be rate cuts by the summer, however her speech this afternoon will offer further insights into how the ECB will reduce inflation.

There is no economic data in the UK being released today. Investors will shift their focus to tomorrow morning where UK retail sales figures are being published. 

Since the unexpected rise of UK CPI inflation yesterday, interest rates are now expected to remain higher for a longer period to tackle inflation. The Pound has been one of the best performing currencies in the G10 this week.

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