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Tag Archives: UK CPI

12 Dec @ UK CPI

Nowadays inflation data of all first world countries is an important economic data to watch out for. Today, is UK CPI.

I decided to place my straddle trade with the following details: –

GBPUSD; Stop if Offered at 1.3335, Spot att 1.3341, Stop if Bid at 1.3365

As it turned out CPI came slightly higher at 3.1% against forecast of 3.0%. Core CPI was the same at 2.7%.

The GBPUSD moved up and triggered by stop if bid, however, after less than 10 minutes it simply had no legs.

I squared the trade at 1.3375 for a small trading profit of 10bps.

UK CPI, PPI, RPI

Not much noise coming up to this even, but decided to put in a straddle trade with the following details: –

Spot 1.2701, Stop if Offered 1.2680, Stop if Bid 1.2720 with corresponding 20bps SLs.

CPI came out strong, PPI weaker, HPI, higher, so what we can deduce is that inflationary pressures are coming from asset appreciation and consumption.

Consumption ok, but asset appreciatio by way of high real estate prices is not healthy, more importantly, it gives BOE the ammunition to raise interest rates to stop the real estate market from over-bubbling.

I withdrew the straddle trade.

UK CPI, PPI and RPI

UK usually is sensitive to this data as it is largely a services and consumption economy.

I decided to place a straddle with the following details: –

Spot: 1.2938

Stop if Bid: 1.2968

Stop if Offered: 1.2908

Let’s see.