- GBP is making a strong move higher after CPI Y/Y rose 2.9% vs 2.6% exp
- Stocks also gaining with the US500 posting all-time high and closing in on 2500
- Bitcoin rising with talk of North Korean demand
- OPEC raises oil demand forecast
The GBP has been the standout performer in FX space today, with the currency surging higher after the UK CPI Y/Y rose back to 2.9% for August – the joint-highest level since 2013. The rise was due to higher prices in sectors such as clothing and footwear, household and communication.
The US500 has today taken out its prior all-time high at 2488 and has made a fresh record peak. Price is now just 10 handles from the psychological round level of 2500 and given the strength and breadth of the rally – all 11 major sectors joined in the push higher yesterday – we could well see this level reached sooner rather than later.
The UN Security Council approved yesterday new sanctions aimed at punishing North Korea for its latest missile and nuclear tests, though the US scrapped demands such as an oil embargo in order to get both Russia and China on board supporting renewed sanctions. Cutting imports of refined petroleum products and banning textile exports are among them. Meanwhile, North Korea could eye Bitcoin (BTCUSD on xStation5) as provisional money so that avoid trade restrictions including the above-mentioned sanctions.
The monthly OPEC report has offered some good news for oil bulls with an upward revision announced for both the current and following years oil demand. Better-than-expected demand from industrialized nations in the West and China has led OPEC’s research arm to raise its oil demand growth estimate for 2017 to 1.42m barrels per day (b/d) – an increase of 50,00 b/d. Oil.WTI is showing a small gain on the day, but the price remains lower than last week’s high with a wave of selling hitting the market on Friday afternoon.